The document discusses key challenges facing banks in engaging customers through digital channels and acquiring new customers. It then outlines how open banking practices can help banks integrate into digital ecosystems and lifestyle needs frequented by customers. Specific use cases are provided that leverage open banking data through APIs to provide account aggregation, product comparisons, savings tips and recommendations to improve customer engagement.

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Key challenges facing banks
The Engagement Challenge – Banking is not in vogue

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Key challenges facing banks
The acquisition challenge - digital channels are not enabling customer
acquisition
?

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The most successful digital business models
According to MIT research, the “ecosystem drivers” are the most successful
digital businesses
• High-growth companies don’t go it alone.
Increasingly, they are achieving results by
creating and orchestrating digitally connected
ecosystems — coordinated networks of enterprises,
devices, and customers — that create value for
all of their participants.
• In Australia, real estate platform driver Domain
partners with about 35 mortgage lenders to offer
homebuyers more loan choices. In the second half
of 2019, the company’s Consumer Solutions
segment, which consists of its loans, insurance,
and utilities connections businesses, grew
revenue by 72%
Source: https://sloanreview.mit.edu/article/driving-growth-in-
digital-ecosystems/

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Digital ‘ecosystems’ support ‘Lifestyle’ needs
Banking must be integrated into ecosystems frequented by customers

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Quick definitions – Open Banking
Providing 3rd parties access to Banking Data via APIs
• Open banking is a banking practice that provides
third-party financial service providers open
access to consumer banking, transaction, and
other financial data from banks and non-bank
financial institutions through the use of
application programming interfaces (APIs).
• Open banking will allow the networking of
accounts and data across institutions for use by
consumers, financial institutions, and third-
party service providers. Open banking is becoming
a major source of innovation that is poised to
reshape the banking industry.
Source: https://www.investopedia.com/terms/o/open-banking.asp

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Open Banking – what should Banks do?
1 2 3
Banks must think beyond compliance to maximise ROI on Open Banking investments
Open
Banking
Services
Aggregation
Services

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Open Banking Data Aggregation
How can we use Open Banking Data to improve customer engagement?
Aggregation Services
Banking Platforms Open Banking
Services
Client Applications
Product
Comparison
Account
Aggregation
Account Opening
. . .
API
Management
&
Security
API
Management
&
Security

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Use Case – Market Product Comparison
Use the Open Banking Product Information API to compare Loans
Aggregation Services
Open Banking
Services
Product
Comparison
Account
Aggregation
Account Opening
. . .
Open Data
Account
Information
Payment Initiation
Bank #1
Open Data
Account
Information
Payment Initiation
Bank #2

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Use Case – Aggregated View of Accounts &
Transactions
Use the Open Banking Account API to present aggregated Accounts, Transaction &
Cashflow
Aggregation Services
Open Banking
Services
Product
Comparison
Account
Aggregation
Account Opening
. . .
Open Data
Account
Information
Payment Initiation
Bank #1
Open Data
Account
Information
Payment Initiation
Bank #2

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Use Case – Savings Tips & Recommendations
Use the Open Banking Product Information & Account Information API to present
Tips
Aggregation Services
Open Banking
Services
Product
Comparison
Account
Aggregation
Account Opening
. . .
Open Data
Account
Information
Payment Initiation
Bank #1
Open Data
Account
Information
Payment Initiation
Bank #2

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Use Case – Accounts Receivable (money due)
Use the Cloud Accounting APIs to aggregate Invoice data
Aggregation Services
Cloud Accounting
Accounts
Receivable
. . .
Invoice Data
Xero
Invoice Data
Customer Data
Quickbooks

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A simple approach to driving customer acquisition
Leveraging Open Banking & Accounting data to provide rich insights &
recommendations

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A Global Product Recommendation API
The API supports multiple API geographies including UK & Australia

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101Pay - SME app with Banking, Invoicing & Loans
Banks must consider the unique needs of the customer segments
Segment: SME (B2C)
Proposition: SME Account Management &
Cashflow Optimisation
Markets: Global (Open Banking Markets)
Features:
- Aggregated Accounts
- Consolidated view of Transactions
- Product Comparisons
- Invoices & payment requests
- Get paid via Bank
- SME Loans

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Open Banking for Everyone
101 Digital is helping connect the Open Banking & Open Finance community
https://www.bank-api.net https://www.openbankingdirectory.io
https://www.linkedin.com/company/open-banking-directory
https://www.linkedin.com/company/bankapi

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For more information, please visit 101digital.io
Or contact us at +65 8339 0399
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