Our Founder and CEO Lisa Shields shares an article about APIs as enablers to banking renaissance. Read her excellent points and opinion here.
"We believe that the emergence of a vibrant marketplace of specialized FinTech providers, leveraged via APIs, means there has never been a better time to be a mid-sized bank(er)." - Lisa Shields
A FI.SPAN collaboration with PYMNTS.com brings you the August issue of the B2B API Tracker with a featured story from Jason Carone, Silicon Valley Bank's director of ACH product management. Read how he discusses bridging the divide between FinTechs and banks with the "lingua franca" - or common language - of APIs here.
" FinTechs are pushing banks to go further. They're essentially stepping in and doing business that has traditionally only been done by a bank." - Jason Carone
Two Canadian fintech companies have teamed up with some of America’s biggest tech giants to fend off patent trolls. Read more here.
“It prevents you from operating your business. When you’re a startup, you’re cash constrained. You should be protecting your IP that you generate and make sure it’s not in (legal) violation."
Our very own Lisa Shields talks about IP Protection Strategies and how to get one for cheap! Read more here.
"When I conceived my second startup, FI.SPAN—an API banking platform that connects financial institutions with independent FinTech service providers—in August 2016, I knew from the beginning that I wanted to invest in our IP strategy."
FI.SPAN's CCO David Koch talks about how his past prepared him to combat problems in his current position and how banks are going to have to change in the future if they want to stay afloat. Read more here.
"A lot of my previous experiences had prepared me for exactly the opportunity that FI.SPAN is going after. FI.SPAN is the grease in reducing the friction of APIs. On the back end, FI.SPAN is helping take whatever generation of technology exists on the current systems and translates that into an API going outbound.”
Clayton Weir, Co-Founder and Head of Strategy talks collaboration between banks and FinTech startups with PYMNTS.com.
“It’s a win-win for everyone,” Weir noted. “If you swap a payor-directed payment system to one that is much more dynamic, you (as an FI) have the chance to process these things … much more efficiently. This allows both the customer and the bank to benefit.”
Are the stars aligning for companies to make API investment a top priority? The April PYMNTS.com B2B API Tracker™, powered by FI.SPAN, looks at how companies engaged in cross-border trade are turning to API solutions to reduce the friction that some players encounter when engaged in cross-border trade, including a brief editorial from our very own Clayton Racine Weir. Read more at PYMNTS.com.
"While engineers widely understand the technology, the business value of APIs is only more recently becoming known in our industry."
Our Very Own Lisa Shields discussing the Importance of API partners in B2B Financial Services. Read more on PYMNTS.com.
“Banks have always been a trusted service provider of core financial services, but customers are turning to third parties for functional innovation,” she said. “What I see service management platforms doing is turning and orchestrating these innovating and compelling third-party offerings into a point-and-click exercise.”
CANADIAN START-UP THROWS A SPANNER IN THE B2B WORKS. FI.SPAN Featured in Electronic Payments International.
Shared With Permission of Electronic Payments International
Please Read the Full Article on their site. (Subscription Required)
CANADIAN START-UP THROWS A SPANNER IN THE B2B WORKS
By Robin Arnfeld
What the FI.SPAN? A new Canadian connector platform is enabling banks to integrate open APIs from B2B banking and payment fintechs to serve their corporate clients. Robin Arnfield talks to Lisa Shields, CEO of the Vancouver-based firm, about its origins, plans and strategy. Lisa Shields has an impressive track record in payments, having founded Vancouver-based global mass payments service provider Hyperwallet Systems. “I ran Hyperwallet for 15 years, and it saw a lot of growth,” she says.
In June 2014, private equity firm Primus Capital became Hyperwallet’s majority shareholder, and Shields exited the firm. She founded FI.SPAN to target the business-to-business (B2B) banking and payments space in August 2016.
“The genesis of FI.SPAN was visits to Hyperwallet clients six to eight months after they had started working with us,” explains Shields.“These large corporations would ask if we could provide services such as cash management, foreign exchange or vendor payments. Clearly, they had unmet needs that their banks weren’t fulfilling, and were willing to work with third-party fintechs to meet these needs.”
“2015 was the year fintech APIs became topical,” notes Shields. “Initially, banks were told by industry publications that fintechs were the enemy as they had modern development tools which would provide a more compelling user experience. “Then banks were told they needed to join the fintechs and expose themselves to their APIs, as this was the only way to ensure ongoing market relevance.”
“My response was that banks need to open up to fintechs, as this will be good for the banks’ customers, the overall market and the economy,” Shields explains. “But, taken in isolation, it is not a good strategy for banks to expose their core services such as ‘get balance’ or ‘move money’, or their customer information to fintech APIs, as this will accelerate their revenue erosion and the erosion of their relevance to their customers.”
According to Shields, commercial banking and core transactional services in North America are worth $1.2trn in revenue to banks. “A PwC survey in 2015 found that banks estimated that just under 30% of this revenue will transition to independent service providers,” she says. “So around $360bn of bank revenue is at risk of erosion over the next few years.” When more and more businesses adopt best-of-breed services for foreign exchange, cash management or vendor payments from different providers instead of the ‘one size fits all’ offering from their bank, revenue and relevance erosion will follow. “Customers will not look to their bank first, or even at all, when they have a core transaction or service need to be met,” Shields says.
“FI.SPAN has the opposite approach to these initiatives,” says Shields. “FI.SPAN isn’t about helping banks expose their core services to third parties.
“Instead, FI.SPAN helps banks leverage APIs from independent service providers that have developed innovative, viable B2B services for banks’ enterprise clients. Fintechs connected to our platform don’t have direct access to banks’ core systems.
“Take the corporate purchasing card space. Should a bank look for the best corporate purchasing card fintech and do deep integration with its API?” Shields asks.
“The problem with that approach is that it provides the bank with a fantastic product for maybe 15% of its corporate clients, but the remainder will go elsewhere to find a corporate purchasing card solution that’s appropriate for them. “Banks need to recognize that there are going to be five or six innovative corporate purchasing cards providers in the market in 2017-2019, and find ways to leverage these companies.”
Read the full article here.
“The mantra in banking, is no longer ‘Mobile first.’ It’s ‘API first.’”
FI.SPAN's Founder and CEO Lisa Shields was recently featured in an Interview w/ Karen Webster of PYMNTS.COM. You can read the whole article here.
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