Token CEO Todd Clyde's Open Banking Expo (London and Europe 2019) talk on how open banking can be used to power the next generation of financial services.

1. The smart move in open banking™
Driving revenue opportunities through
Open Banking
Todd Clyde, CEO

2. The smart move in open banking™The smart move in open banking™
Agenda
1. About Token
2. Current state of readiness
3. Live use cases
4. Improvements required for mass adoption
5. Revenue generating propositions

3. The smart move in open banking™
The smart move in open banking

4. The smart move in open banking™
A marketplace is a two sided problem
Demand Supply
Third Parties Banks

5. The smart move in open banking™
And Requires a 2 Sided Solution
APIsAccess to Banks

6. The smart move in open banking™The smart move in open banking™
To power the next
generation of financial
applications…
... by putting a bank in
every app
The smart move in open banking™

7. The smart move in open banking™
Current State of Readiness - UK
● 13 January 2018 deadline
● 46 Banks Live
● 165 TPPs Registered
● 140M Transactions per month
● 99.9% are data transactions
13 Jan 2018

8. The smart move in open banking™
API calls achieve 140M per month in the UK
2018 | 2019

9. The smart move in open banking™
14 March 2019
● Secure APIs
● Sandbox environment
● Documentation & support
Current state of readiness - EU
14 September 2019
● Operational APIs
● Production environment
● Compliant with RTS and SCA
● eIDAS acceptance

10. The smart move in open banking™
92% Research
● Published plans of APIs and sandbox
● Determination of standard
● Variations to the standard
92%
8%
API & Sandbox
Available
Not available
Pan European Accessibility as of 14 March 2019

11. The smart move in open banking™
Verified accessibility of sandbox by country
88%
12%
Accessible Not Accessible
88%
9 of 9 100%
16 of 16 100%
6 of 6 100%
17 of 17 100%
15 of 15 100%
27 of 28 96%
15 of 16 94%
7 of 8 88%
6 of 7 86%
4 of 5 80%
7 of 9 78%
3 of 4 75%
12 of 16 75%
70%
Benelux
France
Germany
Ireland
Italy
UK
Spain
Estonia
Austria
Finland
Sweden
Denmark
Poland
CBI Globe

12. The smart move in open banking™
Verified operational sandbox by country
77%
23%
Operational Not Operational
77%
27 of 28 96%
14 of 15 93%
8 of 9 89%
6 of 6 100%
4 of 5 80%
12 of 16 75%
12 of 16 75%
70%
6 of 9 67%
11 of 17 65%
5 of 8 63%
4 of 7 57%
2 of 4 50%
Ireland
UK
Italy
France
Finland
Germany
Poland
CBI Globe
Sweden
Benelux
Estonia
Austria
Denmark

13. The smart move in open banking™
Verified status of production by country
50%
30%
15%
Accessible APIs in production
Operational APIs in production
Banks compliant in production

14. The smart move in open banking™
Accessibility by API Standard
NextGen PSD2
CBI - NG1.1
STET
Bespoke
UK OB
SIBS
Polish std
Redsys
2,614
1,995
280
185
65
1,995
280
185
65
38
28
16
7
76%
11%
7%
2%
1%
1%
1%
0.2%

15. The smart move in open banking™
TPP Connection Process
● Signup up for developer account
● TPP application in Sandbox
● Supply of TPP Certificate
● TPP Access to and testing in Sandbox >> AIS, PIS,
4 types of payment, Support
● Migrate to production for testing
○ Supply product credentials
○ Configure application for production
○ Commence testing in production

16. The smart move in open banking™
Data Use Cases
PFM / Multi-Banking Credit Assessment

17. The smart move in open banking™
Payment Use Cases
Wallet Load First Payment
$

18. The smart move in open banking™
Low-cost first rental payment
Eliminate high processing fees
Simplify onboarding journey and
initiating first payment

19. The smart move in open banking™
Frictionless wallet load
Improve onboarding journey
Lower processing costs
Drive instant settlement

20. The smart move in open banking™
Actionable PFM Application
Combine banking, payment
and receipt information
across institutions
Forecast future cash flow

21. The smart move in open banking™
Barriers to mass adoption of open banking
Fragmentation of APIs
Friction in user authentication (SCA)
Restricted payment functionality
TPP frustration

22. The smart move in open banking™
Problem: bespoke APIs

23. The smart move in open banking™
F1 - Resulting in fragmented ecosystem
Killing the benefits

24. The smart move in open banking™
Solution: API aggregation
One API
Developer Platform
Simplest Way to Access Banks

25. The smart move in open banking™
F2 - Friction in Authentication
PSU
ASPSP
Solution: Federated Identity
TPP
IDENTITY

26. The smart move in open banking™
F3 - Restricted payment functionality
Single immediate payments
Single transaction consent
User must be “present”
PSU
ASPSP
TPP

27. The smart move in open banking™
Solution: Commercial APIs
Compliance API-based Banking

28. The smart move in open banking™
What are Commercial (Premium) APIs
PSU
ASPSP
TPP
Commercial APIs
Scope
● Product types
● Richer data / identity attributes
● Derived or aggregated data
● Enhanced payment functionality
Supplied by
● Software companies
● Pay.UK
● Swift

29. The smart move in open banking™
Commercial APIs enable more than compliance APIs
Request-to-Pay
Third party initiated
Programmable consent
Frictionless
authentication

30. The smart move in open banking™
Subscription payments & Card on file
Variable recurring payment
“Authorisation” on file
Merchant Initiated

31. The smart move in open banking™
Biller direct payments
Variable recurring payment
“Authorisation” on file
Biller Initiated

32. The smart move in open banking™
Installment payments
Request to Pay capability
Variable recurring payment
“Authorisation” on file
Biller Initiated
BUY NOW
PAY
LATER

33. The smart move in open banking™
Autonomous sweeps
Aggregate with data access
Analyse for “rules-based”
triggers
Initiate automated sweep
● User not present
● Long-lived consent
● Programmable authorisation

34. The smart move in open banking™
POS payments
Frictionless authentication
Request to Pay
Delegated authentication

35. The smart move in open banking™
The future is unlimited
The Internet
Internet banking
Mobile banking
Twitter
5 Years from now…
...Your bank will be in every app

36. The smart move in open banking™
The future is API-based banking services
Relationship banking → ecosystem
banking
Meet consumers in their digital
experiences
Premium services, packages, capabilities

37. The smart move in open banking™
Thank you
Todd Clyde, CEO
Token.io LTD
15 Bishopsgate
London, UK EC2N 3AR
Todd.Clyde@token.io