apidays New York 2023 - API Adventures in Embedded Finance, Jason Kobus, JPMorgan Chase & Co.

apidays New York 2023
APIs for Embedded Business Models: Finance, Healthcare, Retail, and Media
May 16 & 17, 2023

API Adventures in Embedded Finance
Jason Kobus, Executive Director - Commercial Banking: API Ecosystem Integration, JPMorgan Chase & Co.

------

Check out our conferences at https://www.apidays.global/

Do you want to sponsor or talk at one of our conferences?
https://apidays.typeform.com/to/ILJeAaV8

Learn more on APIscene, the global media made by the community for the community:
https://www.apiscene.io

Explore the API ecosystem with the API Landscape:
https://apilandscape.apiscene.io/

Transcript

1. Jason Kobus, Executive Director Commercial Bank>Data & Digital Product>Innovation>API Ecosystem Integration “API Adventures in Embedded Finance” API Days NYC, May 2023 Fig. 1. "A space image showing 3 stars in the same system which are blue, red, yellow. Include a starship which is long and slender with lots of sensors scanning, digital art." prompt, DALL-E, version 2, OpenAI, 6 May. 2023, labs.openai.com. Embedded finance components for accounts, money movement, and data power a universe of applications & system integrators to drive more API product co-development and combustion. We’ll talk how APIs are being used to more easily connect with companies, solve financial translation for business processes, and help mitigate risks more quickly. Explore some of the techniques practitioners can apply to analyze business processes and harness API acceleration to generate more value for their enterprises. I’ll wrap with some examples where JPMC has embedded platform capabilities. The opinions expressed in this presentation are my own and not those of JPMorgan Chase & Co.
3. C O N F I D E N T I A L Overview We’ll cover some embedded finance and process themes and I’ll overlay context gleaned working for banks intersecting with other platform builders. To help analogize I’ve added some generative AI images to spark your own adventurous thoughts for how these may apply to your own platforms. Mnemonics: 1. “TREE” 2. “BABBLE” 3. “NATPIE” 4. JPMC Journey and jump points for you My pic Agenda: *Bio image created using 20 pictures of myself, “Our Pick” settings (generated request code 487737), Arta, version 2, AI Art & Avatar Generator, 15 April. 2023, https://apps.apple.com/us/app/ai-arta-art-photo-generator/id1642969698.
4. C O N F I D E N T I A L Transactions, Risk, Embedded Economics (“TREE”): Circulation of money amongst customers, suppliers, employees, and other service providers Banks and FinTech are increasingly interconnected to simplify trusted data exchange and money movement to give decision makers richer context to execute with greater confidence. • Well established trunks: • Accounting and Expense Mgmt > real-time, AIML closing books • Treasury management for complex multi-[national|entity] operating environments • Loans are based on a time arbitrage but more recently innovation potential. APIs can accelerate diligence/monitoring • Data sharing partnerships: Define the interface and you define the deal “API+?=value” • Systems Integrators-aaS • Many forms of risk mgmt stem from the flow of money > APIs can be PESTELI control points. • New-ish branches • M&A synergy • Audit and trust assurance • Operational excellence and empowerment Fig. 2. "Global tree with fantastical branches growing from a mighty bank fortress as its base with currency symbols and happiness as fruit, digital art" prompt, DALL-E, version 2, OpenAI, 16 April. 2023, labs.openai.com.
5. C O N F I D E N T I A L Business API Backplane Bringing Lean Efficiency (“BABBLE”) Executing global payments and integrating all the finance-adjacent systems requires not just knowing actual languages but conquering an array of industry standards and payment networks, many technical protocols/APIs, and achieving and maintaining compliance with regional/country laws and regs. Some common capabilities offered by these towers of financial processing: • Accounts and ledgers as a compartmentalized value store for non-banks and source/destination diversity • Data in/out efficiently which is timely, accurate, correct and a lot of ETL work • Money movement in/out with high degree of trust, compatible with business need (timing, cost) Companies run their own business backplane which is a set of interconnected processes and systems to help them achieve their goals. This is where API practitioners can look for more efficient ways to facilitate the flow of financial data and money. Trends: +Open Banking APIs, US: CFPB / FDX, +improving Fintech Interop and SDKs for sharing data, Identity and Trust as unpinning for all. Winners have better AIML powered real-time interdiction and decisioning. Recent events in the US banking system caused a lot of disruption to many innovation economy companies who relied on a small set of banks. This urgency created the opportunity to build innovation faster to meet client needs more quickly so they could maintain their financial operations. Banks and fintechs translate through all the layers of the global financial stack and plug into a company’s financial operations backplane. Fig. 3. "Futuristic tower of Babylon growing on top of a green 3d circuit board with golden microchips, digital art" prompt, DALL-E, version 2, OpenAI, 6 May. 2023, labs.openai.com.
6. C O N F I D E N T I A L Navigate using APIs as a Tool for Process Improvement & Exploration (“NATPIE”) • Techniques that can help accelerate value with APIs: • “POST over pitch” and propagate tools and knowledge to lower the bar to actually using APIs for more non devs vs training off static content. • Dissect business processes like an auditor which is very much what a new Product Manager has to do when they inherit products or have to learn many of them. SIPOC as a tool. • Be scientific and empirical. Find and use data to generate new insights and make more informed decisions. • Serialize your APIs and you’re well on your way to solving quests for business process re-engineering and automating mundane tasks There is strength in skill (and ALL forms of) diversity. Empowering new roles to use APIs makes your company smarter and lets more minds understand the actual capabilities to solve more value puzzles. Fig. 4. "A top down dungeon map with traps made from computer code leading to treasure of gold and gems " prompt, DALL-E, version 2, OpenAI, 6 May. 2023, labs.openai.com. It can be daunting navigating all ways APIs can integrate, and all the technical and industry standards. Level up your coding skills and get hands-on tools to master your APIs. Seek out those with complimentary skills, form up your diverse team, and get into your own adventure.
7. C O N F I D E N T I A L Some JPMC embedded finance experiences (&”WGMOOBITM”) • The realms where spend my time? DevPortal and TS-APIs to better package and distribute to devs, standards like FDX, and components to accelerate integration and innovation for commercial banking clients. Mission: Help embed JPMC into businesses so they can win in their vertical with easier, faster, and better integration. • Engage Client & Partner Builders: Make our developers dreams come true every day with new DevX and Rel capabilities • Fuel FinTechs: POWER at Money 2020, more about APIs at FinTech DevCon • Catalyze Startups and enable them the tools with they want use: Beyond Banking, Capital Connect • Some areas I watch and cheer for my colleagues: • Distribute Chase Card / Merchant Payments with new options to fit client needs • Unleash integration goodness: Blockchain: Onyx, Healthcare: Instamed, Real estate: Story, Research on Payment Trends, Client stories • Diversity, Equality, & Inclusion >>> Looking forward to sponsoring Women In APIs and JPMC luncheon Treasury Ignition: https://www.jpmorgan.com/commercial-banking/solutions/treasury-payments/digital-solutions/treasury-ignition This is a high-level fly over of some of the platform work I do and things I’ve seen JPMC do: https://www.jpmorgan.com/payments/paymentsunbound
9. C O N F I D E N T I A L {“Disclaimers”: ” Chase, J.P. Morgan, JPMorgan, and JPMorgan Chase are marketing names for certain businesses of JPMorgan Chase & Co. and its affiliates and subsidiaries worldwide (collectively, “JPMC”, “We”, “Our” or “Us”, as the context may require). We prepared these materials for discussion purposes only and for your sole and exclusive benefit. This information is confidential and proprietary to our firm and may only be used by you to evaluate the products and services described here. You may not copy, publish, disclose or use this information for any other purpose unless you receive our express authorization. These materials do not represent an offer or commitment to provide any product or service. In preparing the information, we have relied upon, without independently verifying, the accuracy and completeness of publicly available information or information that you have provided to us. Our opinions, analyses and estimates included here reflect prevailing conditions and our views as of this date. These factors could change, and you should consider this information to be indicative, preliminary and for illustrative purposes only. This Information is provided as general market and/or economic commentary. It in no way constitutes research and should not be treated as such. The information is not advice on legal, tax, investment, accounting, regulatory, technology or other matters. You should always consult your own financial, legal, tax, accounting, or similar advisors before entering into any agreement for our products or services. In no event shall JPMC or any of its directors, officers, employees or agents be liable for any use of, for any decision made or action taken in reliance upon or for any inaccuracies or errors in, or omissions from, the information in this material. We are not acting as your agent, fiduciary or advisor, including, without limitation, as a Municipal Advisor under the Securities and Exchange Act of 1934. The information does not include all applicable terms or issues and is not intended as an offer or solicitation for the purchase or sale of any product or service. Our products and services are subject to applicable laws and regulations, as well as our service terms and policies. Not all products and services are available in all geographic areas or to all customers. In addition, eligibility for particular products and services is subject to satisfaction of applicable legal, tax, risk, credit and other due diligence, JPMC’s “know your customer,” anti-money laundering, anti-terrorism and other policies and procedures. Products and services may be provided by banking affiliates, securities affiliates or other JPMC affiliates or entities. In particular, securities brokerage services other than those that can be provided by banking affiliates will be provided by appropriate registered broker/dealer affiliates, including J.P. Morgan Securities LLC and J.P. Morgan Institutional Investments Inc. Any securities provided or otherwise administered by such brokerage services are not deposits or other obligations of, and are not guaranteed by, any banking affiliate and are not insured by the Federal Deposit Insurance Corporation. Changes to Interbank Offered Rates (IBORs) and other benchmark rates: Certain interest rate benchmarks are, or may in the future become, subject to ongoing international, national and other regulatory guidance, reform and proposals for reform. For more information, please consult: https://www.jpmorgan.com/IBOR JPMorgan Chase Bank, N.A. Member FDIC. Deposits held in non-U.S. branches are not FDIC insured. © 2023 JPMorgan Chase & Co. All rights reserved. “}