API ADOPTION PATTERNS IN BANKING&THE PROMISE OF MICROSERVICES?

Sachin Agarwal

Digital Disruption in Banking

Mobile Cloud Customer Centric

Block Chain Payments FinTech

Traditional Bank’s Challenges

Regulation Security Infighting

Mainframes Slow Vision

What is Hindering Banks from going Digital?

Multichannel

Cloud

Consumer Preferences

Block Chain

FintechSpeed

APIs are key to Competitive Dynamics

But there are some specifics traits and adoption patterns unique to banks

APIs Adoptors in Banking

Adoption Patterns for Banks

1. Unlock Data

Data Services

Packaged Apps

Mainframes

Break Data Silos

Create Customer Centric Views

Expose as APIs

Unlock Data from Legacy Applications

1. Unlock Data

2. Share APIs

Learn to Walk, Before you Run

Learn to share Internally

APIs Foster Internal Innovation and Efficiency• Securely publish, share and use common services• Improve discoverability of internal services• Create internal communities to foster innovation

Internal API Catalogs

• 100’s and 1000’s of APIs unlike a few external APIs

• Searchable

• Policy Based View

• Internal Hackathons

1. Unlock Data

2. Share APIs

3. Security

Realizing End-to-End Security

Managing the User Experience

Securing the App - PII, PHI

Enabling Easy Developer Access

Securing the Channel

Securing the Backend

Major API Security Concerns

API Consumer Security?

Relevance to PCI Compliance• APIs are now part of e-commerce

• Card payments pass through API

• The infrastructure underlying the API?

1. Unlock Data

2. Share APIs

3. Security

4. External APIs

Open APIs or Private APIs?

90% Private/Partner APIs

Customized Contracts/SLA

App Provisioning/Security

API Federation

Why Private APIs?

1. Unlock Data

2. Share APIs

3. Security

4. External APIs

5. Step Away from Monolithic Apps

Monolithic vs Microservices

• Unscalable• Hard to manage• Hard to learn• Slow to deploy

• Scalable• Easier to manage• Easier to learn• Quick to deploy

Why should Banks care?• Benefits

– Improved agility– Better reliability, elasticity– Global scalability

• Challenges– Restructuring the IT organization – Agile, DevOps– Investments in new frameworks & platforms– Greenfield vs. Re-architecting– New skills development

• Design• Development• Testing

Re-Architecting an Application

Monolithic Application

Monolithic Application

Re-Architecting an Application

Re-Architecting an Application

Key Aspects of Digital Banking• Create Digital eco-systems with APIs

• Integrate data and applications to create a digital value chain

• Secure your digital interactions

• Create a scalable hybrid microservices infrastructure

Questions@sachinagarwal@akanainc