For Corporates, DBS offers a service called Rapid (Real-time API by DBS), which includes:
- Workflow APIs: interoperability payments, Cloud ERP integration, Direct Debit Authorisation, Bank Statements Provisioning
- Transactional APIs: Remittance Payments, Low Value ACH Payments, Real-time Payments, FX Booking, Real-time Collections, eACH
“We serve more than 1.2 million customers a week in Singapore. The DBS API partnership has helped us to speed up the process of payments so that our customers can focus on enjoying their meals. Speed is essential in this process, and we’re delighted that banks such as DBS are exploring the use of digital capabilities to smoothen such experiences.” – McDonald’s spokesperson
Currently, banking services that have integrated on DBS RAPID are:
- Account Information Services such as : Balance Enquiry, Account Status, Bank Account Verification and Inward Credit Confirmation (incoming fund)
- Payment / Transfer Services: Account Transfer within DBS Bank, SKN, RTGS,Telegraphic Transfer (SWIFT), Real Time Online Fund Transfer via ATM Bersama network and Virtual Account (VA) Online Creation
In the future, DBS stated to integrate existing banking services, such as Foreign Exchange (FX Booking), Trade and Tax Payments.
aXess by Standard Chartered
Standard Chartered, as one of the leading money-issuing banks, is part of in a taskforce that defines standards for open APIs under the Hong Kong Monetary Authority’s effort to make such APIs mandatory. Its open API platform aXess offers 82 corporate APIs.
“Our corporate clients use API services to initiate real-time payments and also to get real-time debit/credit notifications. This helps our clients with improved liquidity and working capital management.” – Martijn De Jong, Managing Director at Standard Chartered
Launched its global API developer hub in November 2016. Use cases include account management, person-to-person (P2P) payments, money transfer to institutions, Citi rewards, investment purchases, and account authorization. Citi’s institutional APIs include 147 APIs, which are so far used by around 580 clients.
“An online payment gateway service provider was able to integrate multiple banking products and payment types in a single API instruction. This has helped the client achieve a more efficient and faster payment processing.” – Citi
Bank’s in Asia are leading the way
Even without strong regulatory mandates, Asia‘s tech companies and banks are fully embracing the benefits that an open data economy can generate. They have already built massive cross-industry ecosystems serving billions of users that are willing to share data in exchange for better services. The orchestration of ecosystems is often cited as a new moat with the greatest business impact potential, however financial institutions should not underestimate the time and effort needed to get there.
Implications for European banks
So far, European banks heavily focused on taking existing products and making them available in digital channels. Next evolutionary steps are new digital banking solutions that have been digitally re-designed from first principles. Next, developer platforms allow to share newly built data and capabilities with the outside world, while marketplace models allow banks to integrate third-party solutions.
Even though direct analogies cannot be drawn for European financial institutions, they can learn a lot from the willingness to invest in new ecosystems and platform business models as well as the innovation savviness by their Asian counterparts.
A few key questions for leaders at European financial institutions to kickstart their open banking journey:
Client needs: How could banking and beyond banking data unlock new value for your clients? Could you integrate additional solutions to streamline your client’s customer journey?
Key partners: Which parties would need to work together to make it happen?
Closed vs. open product portfolio: Do you prefer delivering proprietary products via proprietary distribution channels? Or are you willing to either open up your own banking data and capabilities via third-party channels, as well as integrate third party products?