payment services get closer to the client€¦ · getting started innovation goes far beyond...

Payment Services get closer to the client

Credit Suisse (Switzerland) AGProduct Management Payments Martin WalderAugust 24, 2018

Public

Getting StartedInnovation goes far beyond R&D (OECD Definition)

2August 24, 2018CREDIT SUISSE (Switzerland) Ltd, Payment Services

Innovation goes far beyond the confines of research labs to users, suppliers and consumers everywhere –in government, business and non-profit organisations, across borders, across sectors, and across institutions

The Oslo Manual for measuring

innovation defines four types of

innovation: product innovation, process innovation, marketing innovation and organisational innovation

� Product innovation: A good or service that is new or significantly improved. This includes significant improvements in technical specifications, components and materials, software in the product, user friendliness or other functional characteristics.

� Process innovation: A new or significantly improved

production or delivery method. This includes significant changes in techniques, equipment and/or software.

� Marketing innovation: A new marketing method involving significant changes in product design or packaging, product placement, product promotion or pricing.

� Organisational innovation: A new organisationalmethod in business practices, workplace organisation or external relations.

https://www.oecd.org/site/innovationstrategy/defininginnovation.htm / Data: Oslo Manual, Third Edition” prepared by the Working Party of National Experts on Scientific and Technology Indicators, OECD, Paris, para. 146.

A PaymentCapture – Process - Execute


Capture from Client Process Send to the Market

MT 940camt.052/53/54

e-DocumentsPrint

SWIFTSEPA (EBA)SIC Interbank

…

A PaymentIt is not Simple



Client Behavior

Regulation

Shareholder

A PaymentGet closer to the client



Connect & IntegrateGet closer to the client



� PSD2 valid as of Jan 13, 2018

� Obligation for open interface for payment initiation and account information as of

Sept 2019

� Order with obligation

of open banking and account opening standards

� UK-wide API

standards

� Many other imitativesworldwide

� ISO is working on a

global standard

– Segregated not coordinated

actions lacking critical mass

� Big players need to implement

PSD2 for hosted EU locations

� Bank individual API cases lacking IT budget because of missing consent management

� Swisscom already announced

will for open API implementation

� Swiss Finance startup demanding open API implementation

� Hypo Lenzburg already API implementation live

� Swiss Fintech Innovation defining Standards for open API implementation

Connect & IntegrateAPI Starting position


1

23

� Active demand of ERP-providers for SME

� 3rd part providers (TPP) start to organize themselves to lobby for open banking

41

Connect & IntegrateCorporate API – the Swiss approach (1/2)


Corporate API as Hub � Services and usecases are standardized

� Range of offering as new USP

� Resources for offering widely spread within the bank

� Front up investment needed while first services will not be profitable

� Chance of sales uplift as well as risk of loosing revenues to disruptive players

� Chance of reusability of front up investment by using a hub against limitations

� Much movement within the market, no clear trend visibleBank A resources

Client

Bank B resources

Hub

Software

Bank B connectionBank A connection

APIs

Consent

Credit Suisse

� Read, validate and store TPP repository� Ensure proper functionality of APIs for a

defined set of use cases (Payment and Account Information)

� Provide 2nd and 3rd Level Support� Validate TPP, confirm rules for revoking/

service restriction� Use current e-Fraud detection setup for

transactions� Ensure valid testing and release

management

SIX

� Certification, onboarding and management of TPP and banks

� Manage TPP repository � Running 3rd party portal� Routing and management of transaction

flow between TPP and Credit Suisse� Provide 1st and 2nd Level Support to

TPP and Credit Suisse� Monitor, report API’s calls� Provide functional specifications for each

release, organize and drive test activities between TPP and CS

TPP

� Certification by SIX� Send order to SIX � Submit initiation of a single payment by

Credit Suisse � Get list of authorized accounts� Get basis account information of an

authorized account� Get balances for a specific account� Get transaction information for a given

account� Ensure valid testing and release

management

Connect & IntegrateCorporate API – the Swiss approach (2/2)


Credit Suisse

� Account Access� Payment instruction submission

Other

� Account Access� Payment instruction submission

ERP/

Accounting

Platforms SIX

Corporate

API Platform

APIs/Legal

Framework

APIs/Legal

Framework

APIs/Legal

Framework

Connect & IntegrateThere are many more ways


ERP/

Accounting

Platform

Separate Certificates (e.g. EBICS VEU) for one client

Client

ERP/

Accounting

Platform

Corporate API: Starting Use Cases

ERP/

Accounting

Platform

Corporate Seal (e.g. EBICS, SWIFT for corporates)

Client

ERP/

Accounting

Platform

Separate Seal (e.g. EBICS ) for several clients

Client

Client

ERP/

Accounting

Platform

Corporate API: Potential Use Case

IoT …

Connect & IntegrateAdapted technology (1/2)


Payment Initiation Account Information

JSON

A Level

B Level

C Level 1

C Level 2

C Level 3

B Level

C Level 4

C Level 5

Call 1 Call 2 Call 3 Call 4 Call 5 Pos 1

Pos 2

Pos 3

Pos 4

A Level

B Level

D Level 1

D Level 2

D Level 3

C Level

C Level

JSONPAIN.001 SBS PAIN.053 SBS

Connect & IntegrateAdapted technology (2/2)


Payment Initiation

JSONPAIN.001 SBS

Payment Initiation

A L

evel

B L

evel

C L

evel

1

Cal

l 1

Trace & TrackIntroduction of SWIFT gpi


Trace & TrackChallenges


Trace & TrackIntegration Potential


Link to tracker

User Story:– client wants to provide the UETR of a recent1) payment to the recipient.

UETR:

121:eb6305c9-1f7f-49de-aed0-16487c27b42d

Trace & TrackIntegration Potential


User Story:– client wants to provide the UETR of a recent1) payment to the recipient.

UETR:

121:eb6305c9-1f7f-49de-aed0-16487c27b42d

Q & ALet’s discuss or …
