U.S Bank Internal API Hackathon Presentation Template Consumer Banking Hack-a-thon APIs and their role in Financial Services

Look around again, 20% of you will lose your position in the Market Place to a company founded after the year 2000 because of a lack of digital business advantage.

CB Insights: 2015

A Short History of Fintech Disruption 2012/13 2011 2009 2007 2006 PayPal Yodlee – Personal Finance App Square –financial services, Merchant payments Kabbage – Get funds for small businesses PayNearMe – electronic cash-transaction network for those that are unbanked or underbanked. Lending Club/OnDeck – Business Loans without the hurdles - Different form of creditworthiness of small businesses.. “Story of a small automobile business” -- Lending Club, Kabbage and OnDeck use APIs to pull in publicly available data (utility bills, BBB data + access data from Turbo Tax, ADP, * Leveraging Yodlee and Plaid APIs to extract bank related data; access ADP to obtain paystub data; and turbo tax to obtain other income data -- taking the burden off of the consumer/small business in the loan application process. http://www.fintechinnovators.com/ 1999 1998

Open APIs in the Fintech ecosystem 508 348 312 89 15 60 Programmable Web; 2013

Banks are moving to Open APIs Based on a survey of more than 130 professionals, the data shows that bankers are enthusiastic about launching API projects: 63.2% of respondents say their bank has either launched an API initiative or is considering the launch of one in the next 12 months. However, the main obstacles which are cited are corporate culture and bureaucracy (62% of respondents) and security (50% of respondents).     Open Bank Project/Bank Innovation Understanding APIs in Banking report; Oct. 2015

Why are Banks Opening their APIs? To more effectively partner/compete with Fintech startups to create customized solutions To provide clients a more streamlined way to integrate and access bank data Drive incremental revenue by accelerating uptake of value-added services through direct & indirect channels Harness the power of the developer ecosystem to drive innovation

Key Areas of focus for Banking APIs Providing access to more data and/or using data in new ways (customer, account or transactional data) Removing friction from purchases and P2P payments (giving customer payment choices, enabling cross-border payments) Enabling financial transactions in new channels (Facebook, digital wallets) Providing digital investing and lending applications (crowd- funding, P2P lending)

Banking and Open APIs – In the News

Barclays offers APIs via Developer Network

Credit Agricole Launches App Store Started with Open APIs – and let developers loose to developer apps for CA customers Started in 2013 -- 30 different apps

App using Plaid: Robinhood (low cost stock trading); Abacus (expense management app), Acorns (investment management app for Millennials) and Digit Plaid Connect

Capital One Launches new Developer Portal http://www.capitalone.io/blog/hello-great-people/ https://developer.capitalone.com/ http://www.programmableweb.com/news/capital-one-launches-first-true-open-banking-platform-u.s./2016/03/11?platform=hootsuite