With 38 days to go, how to

pivot to turn PSD2 to your

strategic advantage

Ben Robinson, Chief Strategy Officer

Fintech Connect, 6th of December 2016

@robinsonbenp

Open Banking legislation isn’t a Europe only phenomenon…

…and should be seen in a broader context

The big strategic shift

InfluenceControl

Learning faster

NetworksProprietary assets

Working faster

Pull

Leveraging position

Open

Push

Defending position

Closed

How

business

must

adapt

Traditional universal banking

Own products

Own Infrastructure

Channels

Front office

On premise hosting

Settlement ReportingPayments

processingProduct servicing

Current account

Secured lending

Deposits

Transaction processing Foreign Exchange

Trading Investment

SME Lending

PFM

Unsecured lending

Wallets

Fintech challenge

FX Transfer

Payments/Wallets

Unsecured personal lending

SME Lending

Social Trading

Mobile money

Automated retail investment

Risk

Platform challenge

Infrastructure players 8

Hosting

Settlement ReportingPayments

processing

Product

servicing

Infr

astr

uctu

re

API Layer

The aggregator model

Bank as aggregator

Vertical integration matters 10

[Image: Hollywood Reporter]

Banking model for the Digital Age

FX Transfer

Payments/Wallets

Unsecured personal lending

SME Lending

Social Trading

Mobile money

Automated retail investment

Risk

Digital

Channels

Front End

Own product

factory

(current

account,

secured

lending,

transactions)

Infrastructure

Cloud-based

hosting

AP

I Layer

A post-GDPR model

Tide already turning?

Source: Y Combinator

Banks could be great aggregators

The Bank

as a

trusted

advisor

Financial education Safe custody of data and digital assets

True, actionable insights Right products and services

Access to trusted partners at

discount ratesImpartial, personalised advice

A lot at stake

2017e 2017-2025macro drivers

2017-2025digital

disruption

2025edo nothing

Boost fromdigitization

EcosystemPlatformBanking

2025SuccessfulEcosystem

Strategy

8.2%

5.2% 5.2%7.7%

14.0%

1.1%

4.1%2.5%

6.3%

Digital disruption Mitigating effect

Future Banking RoE levels

Ditching the

legacy

Systems upgrade 16

Cultural change

required

Opening up

existing platforms

Selling third party

products

Sharing customer

data

The hardest change?

Thank you

@robinsonbenp