apidays LIVE India 2021 - Connecting 1.3 billion digital innovators
May 20, 2021
Banking Redefined - Decoding the API era for Indian banks
Aishwarya Jaishankar, Co-founder of Hyperface Technologies
2. • Banker turned Fintech Entrepreneur
• Launched India’s first digital savings account
• Oversaw a complete bottoms up revamp of retail
banking capabilities for an MNC bank in India
• Happy to have had a bird’s eye view of digital banking
revamp in India
• Currently
• Consulting Fintech’s and Neobanks
• Cofounder of a Banking as a service company
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Aboutme
3. • Availability of banking
services to the whole gamut
of population was driven by
the GoI
• BSBD
• Relaxed KYC
• BC Model
• CKYC
• The Aadhaar revolution
• KYC norms aligned with
Aadhar
• OTP Based account opening
• Payments and settlement
act 2007
• National financial switch
2003
• RTGS and NEFT – 2004
• Setting up of NPCI – 2008
• Launch of UPI - 2016
APIBankinginIndia-Thefoundingstones
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Financial Inclusion Identification revolution Digital payments
4. • The data revolution
• Indian customers enjoyed the cheapest data plans in the period 2010-2020
• This led to a boom in smart phones and mobile applications
• The entry of Ecommerce
• Home grown players competed with Amazons entering
• There was a boom to pay digitally and seamlessly
• Growth of non banking payment offerings
• Wallet players (who evolved into payment banks)
• Conceptually customers evolved from thinking of bank as the payment sourcing destination to third party applications
• A thought process furthered by UPI, which processes over 90% of its transactions through non banking applications .
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Otherparadigmshifts
5. page 5
UnderstandingtheBankingsystems
Core Banking Layer
(Transaction processing)
• TransactionAuthorisation
• Ledger management
• Sub systems (card host, FRM)
Customer identification
management
• Universal ID
• KYC management (Re-KYC, e-KYC )
• Profile management Customer servicing and
operations
• Customer facing channels
• Service delivery
• Marketing and cross sell
Monolithic systems Crippled by legacy Difficult to implement changes at
pace
6. • Need for real time interactions
• Need for real time service resolutions
• Need for real time loans and investments
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Whatcustomerevolutionmeant
Enter 360 degree APIs
Origination
Request fulfilment
Cross sell journeys
Backend processing
Evolution of electronic channels to Customer Interfaces = APIs
7. page 7
WhatnewAgebankdigitalteamsaredoing?
Building digital
maturity
• BeyondAccount
opening APIs
• Robust mobile
application offering
100+ functionalities
• Servicing vs new
cross sell journeys
vs features
Strengthening core
systems
• Core system
upgrades and API
building operators
came into force
• Investment in core
systems with ability
for end to end API
interfacing came
about
Propelling real time
interactions
• Enter Artificial
Intelligence & Big
Data
• Chatbots
• Customer CRMs
and MarTech tools
8. Powered by Modern Technology-Componentized architecture
Core Banking Saas APIs Loan Organisation Saas APIs KYC Saas APIs
CRM / FRM Interface portal/Partner Apps 3rd party digital Marketplace
Bank applications
WhatFutureofBankinterfaceslooklike
From monoliths to modularity…
Allowing for a plethora of undbundling – Regtech, LendingTech…
9. Monetise
• With Robust APIs, banks are re evaluating Fintech / Neobanking partnerships
• API banking and monetisation of core platforms are the new reality
• Cost savings using APIs on the operational and processing side.
Innovate
• Sahamati Account Aggregator platform – India’s open banking platform
• Allows bank to pull customer’s financial data with consent to cross and upsell
intelligently
Collaborate
• Embedded banking offerings are the new reality
• Banks are going beyond own real estate to contextual real estate (Ex – travel
loans atTravel portal, FDs inWealth tech applications)
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What’snextforAPIBanking?
10. • Segmented and super segmented offerings
• Teen ager neo banks to NRI Neobanks
• Curated products and service
• Financial super Apps
• Any brand can sell banking products
• Relevant and customised product offerings
• Open Banking
• Banking data goes out of banks territory to be shared by customers
• Better bargaining power
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Whatthismeanstocustomers