DNB Open Banking - Nordic Finance Innovation

Editor's Notes

1. Many similar challenges in media and finance: New technology Demanding customers (used to world-class digital services) New competition
2. Open Banking: What is it all about?
3. First: A quick presentation of DNB
4. DNB IR: https://www.ir.dnb.no/ DNB rank: https://www.forbes.com/companies/dnb/ Norges Bank statistics: https://static.norges-bank.no/contentassets/b633cbc4154540abab705d622eefe52f/nb_memo_2_2017.pdf?v=05/16/2017163134&ft=.pdf
5. 96 % of Norwegians are on the internet 91 % use online banking services 6 % of payments are with cash
6. EU’s fragemented payment systems are very expensive. The estimated savings from PSD2 is 130 Billion Euro - per year Number: Antonio Tajani, member and president of the EU Parliament "Currently each Member State has its own rules on payments, and the annual cost of making payments through these fragmented systems is as much as 2-3% of GDP. Payment service providers are effectively blocked from competing and offering their services throughout the EU. Removal of these barriers could save the EU economy €28 billion per year overall.” https://worldline.com/en/home/blog/2017/july/psd2-what-behind.html
7. PSD2 goals
8. This is from a bank’s developer portal It’s a nice internal pep-talk, but not the most important topics for people outside of the bank
9. Nobody knows when PSD2 will take effect in Norway “Sometime in 2019, or maybe 2020” is a good estimate
10. If you just do the PSD2 minimum compliance: Good luck. Opportunity: Because DNB can now create services for non-DNB customers, and together with others Threat: DNB will not always have the best service. We will lose market share, but in a bigger market
11. DNB has several business units The largest are: PM, BM, LCI, Markets We now have a new one, which we have decided to call .. New Business
12. We will soon be 70 people Data: Data Architecture, commercialising data, data governance, master data management Payments: Strategic across DNB, develop infrastructure, biz dev, make transaction data available Open Banking: APIs, development, product ownership, biz dev Partnerships and New Ideas: Strategic partnerships, Accelerator, CVC New Tech Lab: Explore new technology that may be useful for DNB
13. The largest banks in Norway
14. The largest banks in Europe Tough competition, more with PSD2
15. GAFA! Maybe these are DNB’s real competitors?
16. Click “Like” on 150 things, and Facebook knows more about you than your partner World-class customer experiences Do you switch from Google or Amazon to something else?
17. Smaller companies are also interesting. Basic services done very well. Minimum Lovable Product. Waiting lists. (Who has one of these cards, or both?) Curve: Virtual card, representing other cards. Choose the current card in the app. Revolut: Prepaid MasterCard. Just launched on-demand travel insurance based on phones location. Both have nice apps, with real-time transactions.
18. Curve integrates with Xero to do your expenses automatically.
19. Revolut travel insurance, just when you need it.
20. An examnple from another industry: Transportation. NYC taxi medallion: Almost like gold. You could take out a mortgage on it Until! https://nycitycab.com/Business/TaxiMedallionList.aspx: 250,000 Photo: http://nordic.businessinsider.com/nyc-yellow-cab-medallion-prices-falling-further-2016-10?r=US&IR=T
21. https://www.ft.com/content/28d4e100-2a6d-11e7-bc4b-5528796fe35c “Yu’e Bao, which means “leftover treasures” because it was originally promoted as a way to invest money left over from online payments, now has more than 260 million users. The vast majority of Yu’e Bao users are under the age of 30.” http://supchina.com/2017/04/28/alibabas-yue-bao-becomes-worlds-largest-money-market-fund-china-business-technology-news-april-28-2017/ http://www.ibtimes.com/alibabas-online-money-market-fund-yue-bao-8-things-you-need-know-1560601
22. Loans: $1,000-750,000 for up to 12 months Pre-qualified, based on platform data Amazon Capital Services: Amazon Lending 3 B USD since 2011
23. For every bank’s service, there is a competitor with laser focus on just that
24. Here’s one example Does anyone remember the leaked internal memo from Santander? April last year. Revealed some very nice margins. https://www.theguardian.com/money/2017/apr/08/leaked-santander-international-money-transfers-transferwise
25. One “fintech”, 10 % of group revenue at risk. 585 million € https://www.theguardian.com/money/2017/apr/08/leaked-santander-international-money-transfers-transferwise
26. Now Transferwise is launching borderless credit card Only 1000 cards so far How much revenue is a stake? https://techcrunch.com/2018/01/08/transferwise-card/
27. 20 M SEK mortgages moved with app: Unable to verify!
28. Plaid is another aggregator
29. Quovo is another What will this mean for banks?
30. Banks: “Some company offering delayed payment online? Not a threat.” Claims to be one of Europe’s largest banks (number of customers?)
31. So what does DNB do? Several things. Digital Challenge is one.
32. Digital Challenge: A weekend of hard work! 200 students in 5 cities (Oslo, Bergen, Trondheim, London Mostly for recruiting, but many good ideas too
33. NXT Accelerator, with StartupLab 3 months program, 1,3 MNOK funding DNB only contributes expertise and time. No money, no obligations in any way. 2017: An experiment 109 applicants, 5 companies selected. Goal: 1 win-win result, and we got 4 out of 5 2018: We know it works, so now we are investing more into it Deadline yesterday (Jan 31)
34. DNB’s Facebook Messenger chatbot is powered by Convertelligence, on of the accelerator startups. Will try a video.
35. DNB’s Facebook Messenger chatbot is powered by Convertelligence, on of the accelerator startups.
36. FundingPartner is one of the companies: Equity crowdfunding. Hoping to get their license this month.
37. DNB Venture: 250 MNOK to invest in startups. https://shifter.no/dnb-venture-investere-250-millioner-startups-selskapene-pa-utkikk/
38. To make it possible to speed up innovation, experiments and partnerships, DNB is moving to the cloud.
39. DNB has code in production that was written in the 80’s. And we have many old computers. Here are two of them. Left: VISA cards Right: MasterCards
40. Some of our old computers are small and cute.
41. Others are larger, and stranger.
42. We are still using our old computers, but we are also building a whole new infrastructure in on someone else’s computer: Amazon Web Services.
43. There are a lot of AWS products available The typical benefits of: Flexibility Pay for what you use Scaling Security Integrations Updates New functionality
44. Build a new platform on AWS Hide the internal complexity. Make services available through APIs
45. DNB’s first cloud-based service was Vipps. Using Microsoft Azure, not AWS. Vipps is now a separate company, and have moved out of the DNB buildings
46. https://plus.google.com/+RipRowan/posts/eVeouesvaVX
47. Running a branch is not free, neither is running a development platform. You don’t have to charge for the API itself. Picture: https://www.bergensentrum.no/bilder/121119-DNB-T2-1ETG-007-1024x576.jpg
48. Some companies make most of revenue through APIs: - Salesforce: 50 % eBay: 60 % Expedia: 90 % https://hbr.org/2015/01/the-strategic-value-of-apis Thanks to Hanna, Trygve and Martin for this overview CPC: Cost per Click CPA: Cost per Action
49. From: Creating products and solutions inside DNB To: Inviting to conversations and collaborations with others Outside-in: What do you need? DNB want to contribute to, and be part of, an eco-system We realise that not everybody wants to build a new bank
50. From: Creating products and solutions inside DNB To: Inviting to conversations and collaborations with others Outside-in: What do you need? DNB want to contribute to, and be part of, an eco-system We realise that not everybody wants to build a new bank
51. To work together with others, DNB is launching a developer portal Finally We have been working on this for a while We had a hackathon to test APIs in September We have a developer event next week to test the developer portal - and updated APIs
52. Information about the Account API
53. John Does’s profile page, with his two apps
54. The details of an app Shows the client id and the connected APIs
55. And in an unfinished presentation Real APIs, but design not quite ready
56. GET /accounts/ Get the accounts for the current customer.
57. Similar to PSD2 Focus: Developer friendly
58. The developer platform makes it possible to create new services. Some by DNB, some by others.
59. https://upload.wikimedia.org/wikipedia/commons/c/cf/MAZE.png
60. It’s natural that relevant non-DNB functionality is offered on the DNB platform An example from Lufthansa: Find the nearest airport: https://developer.lufthansa.com/docs/read/api_details/reference_data/Nearest_Airport
61. Outside-in! Design Thinking Empathy
62. Norway has one of the world’s best digital infrastructure Here: Tax API for annual income
63. Tax API for annual tax
64. DNB used the public service APIs to create the world’s first fully digital mortgage process When you want to buy a house, you only have to deal with a robot. Ludwig Mies van der Rohe: Farnsworth House Ex Machina
65. Gjør det mulig for programmer å kommunisere med hverandre