How API Empower the Open Banking Strategy? Credit as a Service Nouamane Cherkaoui, CIO at Societe Generale Franfinance

1. HOW API EMPOWER THE
OPEN BANKING STRATEGY ?
– CREDIT AS A SERVICE
@FRANFINANCE –
Nouamane Cherkaoui
Franfinance- Société Générale
APIs : From Legacy to Agile, From Product to Ecosystems
December 10th, 2019

2. @ FRANFINANCE│SOCIÉTÉ GÉNÉRALE│ 2
Goobye banks, hello banking !
Banking Is No Longer Somewhere
You Go, But Something You Do.
BRETT KING
Co-founder and CEO of Moven, a mobile banking startup.

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TALK SUMMARY
Finance Ecosystem & Open Banking01
API Role on IT Open Architecture Strategy02
Franfinance business model – Credit As a Service03

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1. FINANCE ECOSYSTEM & OPEN BANKING 01
Banks & financial
institutions
New
competitors
Technological
developments
A wave of Regulatory &
security requirements
GDPR, KYC, BCBS239, DSP2, Solvency II,
AML, FATCA, Privacy and Security, …
Digital
Consumer
Experience
ATAWAD - Consumer
experience
Chatbot, 4’S, Mobile 1st , freemium
services,…
Technology innovation
IA, Blockchain, Facial recognition,
electronic signature, API 1st , Big Data,
Cloud, quantum computer, …
A Changed Competitive Landscape
Regulatory
Pressure
New banks & Non-
banks competitors
Neo-banks, FinTech's, GAFA,
Retailers, …

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1. FINANCE ECOSYSTEM & OPEN BANKING 01

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1. FINANCE ECOSYSTEM & OPEN BANKING 01
Credit & Insurance Neo-banksAggregator's
… … … …
Connected experiences
for their customers
New online services,
less expensive and with
added value
Banks & Financial institutions
…
Challengers
Private Partner Network Public
Open API for partners Open API for limited members Open API for all accessAPI only internal
Private API Open API
Payment

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1. FINANCE ECOSYSTEM & OPEN BANKING 01
So what ? We must rethink the role of the bank in the customer relationship ! But not only… (*)
OPENING SOME RELATIONS WITH THIRD PARTIES
The customer has a wider offer with a large choice of actors,
the bank no longer has the monopoly of customer relations
RELATIONSHIP ON TRADITIONAL BANK
The Bank as a single point of contact for Customer
Relationship
INVISIBLE FINANCE
The customer use financial services without having any
direct contact with the actor who provides them no longer
matters (Impact of artificial intelligence and new interfaces)
« INCUMBENT » BANK
CHALLENGERS
FinTech, GAFA
BANK
OTHER # SERVICES
Facebook,
WhatsApp, Uber…
B
A
N
K
OPEN
BANKING
CLOSED
BANKING
(*) Adapted from octo

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2. API ROLE ON IT OPEN ARCHITECTURE STRATEGY 02
Controllability of
authentication and
authorization
Why are APIs so popular?
Using HTTPS as an easy
protocol* for communication
*protocol = rules of communication
Using REST, an architectural
framework to build APIs*
commonly named as “RESTful APIs”
Using JSON or XML as well
structured datatypes
Easy rules for
communication
Commonly agreed on
architectural style
Well structured datatypes
for straightforward
processing of data
The API defines which and how
information will be provided
Authentification: OAuth 2.0
KPI follow up to
improve services
Traffic growth, Direct revenue,
number of developers, apps,
partners, customers ex

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3. FRANFINANCE - POSITION ON THE FRENCH OPEN MARKET
N°3
On leasing for
enterprises
N°4
on consumer
loans
A French Key Actor & Open Banking pioneer on Credit As a Service
Franfinance
03
Why ?

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3. FRANFINANCE – OPEN DNA
 Engage in a long-term and close relationship
with partners, to continue strengthening our core
business of sales financing.
 Pushing our growth drivers: develop sales
activity by digital and explore new markets
 Build on innovation and continue our efforts in
the use of data and digitization of our processes.
 Continue to open our IS and diversify our
partnerships with local players but also fintech
Mix
Strategy
 A unique relational model : Phygital
 A territory network to support our
partners everywhere
 An omnichannel know-how
 Continue to be pioneer in innovation (electronic
signature, scoring, ...).
 Our open-mindedness: leader of open banking,
our know-how shared with partners
Mix
model
# Specificities
# Value-chain# Open world
Open Banking Fidelization DirectMerchants
Financing individuals & market partners (Banks, Neobanks, Insurances & Fintech’s
Financing small, mid & large Cap
03

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3. FRANFINANCE – SERVICIZATION STRATEGY -API BASED
Each service in the value-chain is exposed
for partners on white label
Banks Neobanks Insurances FinTech’s
white label
03

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QUESTIONS ?

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@ Nouamane Cherkaoui
@CherkaouiN1
THANK YOU !
How API empower the Open
Banking Strategy ?
Credit As A Service