Issue link: https://go.axway.com/i/1321495
12 Open Banking APIs State of the Market Report 2020 USE CASES An open API in line with open banking regulations is available. However, a greater focus has been on onboarding fintech and SME products via APIs to offer to business customers through a marketplace, enabling business customers to link their bank account to third party providers. CONSUMERS & PARTNERS BUSINESS CUSTOMERS: The bank offers a marketplace of apps for personal and business customers to link to their bank accounts. In recent years, the marketplace has added more SME third party provider products. As a result, the bank has steadily built up a business customer base of 200,000, the majority having multiple accounts with the bank. PARTNERS: The marketplace offers 52 products to bank customers from 42 third party partners. COST OF INTEGRATIONS The bank has invested over USD25 million on developing its banking technologies, which run on public cloud infrastructure. MONETIZATION Open APIs: In line with open banking regulations, the open APIs are free of charge to use by accredited third parties. Platform marketplace: Income from offering platform services grew to USD2 million in 2019. VALUE GENERATED Revenue from payments processing: Payments processing volume is doubling month on month. Direct revenue from platform marketplace has grown to USD2 million in 2019. Customer lifetime value increases: The cost of account expenditure dropped from 2017 to remain stable at USD110 per account over the past two years. Business accounts are more likely to maintain their relationship with their bank as 33% are integrating at least one marketplace product with their bank accounts. AN INNOVATIVE, UK-BASED NEOBANK WITH $102 MILLION REVENUE IN 2019/20, AND OVER 1.5 MILLION CUSTOMERS. THE BANK HAS PUBLISHED ONE OPEN API WITH BOTH ACCOUNT INITIATION AND PAYMENT INITIATION FUNCTIONALITIES 2 . The UK demonstrates the strange paradox that often occurs with open banking to date. With clear API standards in place and a regulatory framework that has ensured banks open APIs, UK is the most mature region globally in terms of having the basic API infrastructure in place for open banking. As a result, there are also a large number of fintechs starting up in the UK to build a new generation of digital financial services that link directly to the customer's bank account. However, the range of product APIs available that expose banking functionalities to support fintech startups is still quite limited. SUMMARY BANK EXAMPLE 2: UK