Open Banking PTBR

APIs as a business concern: The People Stack Banks are beginning to ensure business units are leading API efforts. 1.6% Business and IT do not talk together on new projects 37.1% Business and IT almost always involved in projects 25.8% Business and IT often involved in projects 11.3% Business and IT have been involved in only a few projects 24.2% It is mandatory that a line of business sponsor new projects There was some mismatch between the reporting of business and IT relationships amongst banking survey respondents and interviews with banking executives. Survey respondents reported that overall, business and IT departments do work together on API projects, with 24.2% indicating it is mandatory that a line of business lead an API effort, and only 12.9% of projects have minimal or no collaboration between business leads and IT. Banking executives interviewed were more circumspect. Amongst banks where regulation was a key driver for commencing an API program, the majority were still struggling to explain and appeal to business leads around the opportunities that APIs could create. One bank had focused on the API reorientation to date, but had not yet opened APIs more publicly: "We have a platform deployed but it has not been opened up outside of the bank as of yet. We have a small handful of APIs that look like good candidates for that, but not a ton of business interest in that market." This was a common experience amongst several banking executives. "APIs are not an overall business strategy yet," said another interviewee. "Because of PSD2, the bank has thought about APIs, so our IT department pushed the bank to think about new business models and potential ecosystems. So we are seeing more lines of business interested in APIs. It's not like an overall API-first strategy. But we do see a general direction, and there are multiple teams that are working towards that development." One executive explained the disconnect: "Business people are very used to selling business products and they don't yet understand that APIs are new products. So there is a big learning curve, and still a lot of convincing to do. To counter that, we bring business in as early as possible in the conversation to have their involvement, especially in all new technology." Business and IT collaboration maturity (N=62) 26 State of the Market report 2018

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