Faced with changing customer behaviors and demands, tightening margins, and increasing threat from digital competitors, financial services institutions (FSIs) will need to meet customers where they are, open up their services, and establish new ways to monetize their products. Doing so will also enable them to build a better profile of their customers, and deliver more personalized user experiences and fast, convenient banking and payment services. Cloud technology plays a big role in this shift toward digital FSIs. 

In Asia, bank branches now account for just 12% to 21% of monthly transactions in the region, with customers turning to digital channels for routine transactions such as peer-to-peer transfers and bill payments, according to McKinsey&Company. Overall customer engagement has climbed from an average 12.7 to 14.9 transactions a month in Asia’s developed markets, and from 6 to 8.1 in emerging markets.¹

Fueled by growing smartphone adoption, the evolving customer behavior and momentum toward digital platforms have enabled digital-first players to snag a growing piece of the banking pie. 

McKinsey estimates that digital banking penetration has grown an average of 97% in Asia’s developed markets, and 52% in emerging markets, with between 30% and 50% of those that have yet to use digital banking likely to do so.

Consumers now are more than ready to make the switch to neobanks, or digital banks. In Singapore, 63% are open to banking with digital-only players, according to a Visa study. On what will entice them to do so, 63% point to bill payments while 56% will use neobank services to make payments at retail outlets. Furthermore, 54% prefer digital banks for the convenience they offer while 52% like the faster service.

Among those who are open to digital banks, 60% will move some services from their current bank to these new players even if the latter have no prior banking experience. One in five of respondents say they are willing to switch all services to a neobank.

The same is true for small and midsize businesses (SMBs) in Singapore. According to a separate survey by Visa, 88% of these companies will consider moving some services to digital banks.

Driven to do so by their frustration over a lack of quality corporate products and control of their banking experience, 55% of SMBs believe neobanks will help bring down overall banking costs. Another 54% say digital banks offer greater convenience, while 53% point to greater ease in paying bills online.

These stats should worry even established FSIs, especially those that have not done quite enough to open up their service ecosystems and drive innovation through APIs.

An API toward new revenue

While most banks have active APIs, the services that some of them currently provide are just functional; they’re the means to an end for partners to obtain their targeted products and services. Without knowing, consumers use these types of APIs indirectly by using their favorite applications every day—a payment processing API will enable them to purchase their lunch, while a loan application API will get them that dream home.

But while banks do not always own the customer journey, they still can find opportunities to sell their products via partners. Many leading banks are leveraging key technologies, such as API management, artificial intelligence (AI), and data analytics to embed digital banking into consumers’ everyday lives, including groceries, travel, entertainment, healthcare, and food delivery. 

When traditional banks open up their APIs to third parties offering broader services that pull in unique services into their own apps, they then become plugged into the broader customer journey. This helps boost usage of their services and embeds them in the overall customer experience. It also provides aggregated data that will help banks build richer consumer profiles, and deliver more personalized products and services.

APIs also create equal opportunities for smaller participants to be involved in the financial services ecosystem, potentially creating micro-segments that previously may not have existed. With insufficient demand within a closed system, to justify the provision of such services, some customers in these micro-segments have previously been left unserved. The APIs, which facilitate collaboration between the different micro-segments so they can be commercially viable, help assuage this problem. 

Some banks are also opening up APIs to allow access to datasets that enable businesses to trigger automated workflows and enhance their operational efficiencies. Others, such as Bank Rakyat Indonesia (Bank BRI) have generated new revenue by leveraging Google Cloud’s Apigee to manage their API lifecycle and identify new revenue opportunities.

Apigee’s monetization feature has helped Bank BRI realize $50 million in revenue and enabled the bank to define its pricing based on API calls and automatically bill based on usage.

In addition, the Indonesian bank uses the data analysis alongside Google Maps Platform to score its customer base of 75.5 million, and identify those who can be recruited as BRILink agents for underbanked areas. These agents are customers who maintain a minimum balance of $800 USD and score high on reliability.

The appointment of branchless agents via the Agent BRILink app has pushed the loan volume from the bank’s branchless business to $26 billion in 2018, up from $15 billion the year before.

How banks can get started with APIs

Clearly, there are new revenue opportunities for banks to leverage the data they already have. Here are some tips to help FSIs kickstart their API journey:

• Align with internal leadership growth initiatives. Leverage executive key performance indicators around growth and cost savings to foster a culture that offers APIs to micro-segmented markets with an eye on cultivating a healthy financial services ecosystem.
• Productize APIs with a strong value proposition. Starting with an API-first approach, stock the shelves of your API shop with new services and a strong inventory of APIs that will entice third parties (i.e., retailers, telcos, etc.) to start using them. This customer-first, outside-in approach will serve as a strong base to build on and enable the addition of more APIs as adoption grows.
• Actively nurture a developer community. A properly trained API manager will ensure constant contact with the developer community, and that partners are provided with case studies to help them identify viable use cases for your APIs.
• Leverage security as a strategic enabler. Security is a key enabler of the API economy, and most API security postures are defensive. By leveraging deep security tooling together with strong identification of developers, banks can better track information and data usage offensively. 

FSIs also need to avoid some common pitfalls, such as overlooking the need to continuously improve their APIs. If no one is using it, the API clearly is failing to provide any real value to third-party developers.

In addition, efforts should be made to market the APIs and let developers know what is available. A common mistake FSIs make is assuming their work is done once their APIs are released and neglecting the need to carry out community outreach and marketing to generate awareness about the APIs.

If you are interested in learning more about this topic, don’t miss our session at the Google Cloud Financial Services Summit on Embedded Finance: The Future of Banking.

^{1. McKinsey & Company. “Asia’s digital banking race: Giving customers what they want.” Global Banking Practice. April 2018.}

This year at Google I/O, we announced the general availability of Cloud-based maps styling for the Maps JavaScript API. In an effort to provide you with more options and more control to help create the best experience for your users, today we’re releasing new features to Cloud-based maps styling. You may already be familiar with these features from the consumer Google Maps web and mobile apps—Landmarks and Building Footprints. We’re also releasing updates to our industry optimized map styles to provide even more map details while providing the flexibility to craft the best experience for your users. Let’s take a look.

Help users quickly scan and orient themselves with Landmarks

You may have noticed some enhancements for prominent places in the consumer Google Maps web and mobile apps, these landmarks help show your users points of interest that help them orient and navigate cities they are exploring or visiting.

You now have the ability to bring this same experience to your users by creating maps using Cloud-based maps styling. This feature is available in 100 cities globally including New York, Dubai, Paris, Mumbai, and Singapore. To enable landmarks for your map, log into the Cloud console and in our style editor navigate to the Points of interest feature type and select ‘Illustrated’ under Marker Style.

Simplify maps features by switching to Building Footprints

Sometimes less is more. In dense, highly vertical cities, showing 3D building heights can add cognitive load for users. Now, in addition to 3D buildings, we offer building footprints as an option in the style editor. Building footprints can provide a strikingly different basemap balance and composition to better support use cases that may not benefit from the added complexity that 3D buildings can present.

Fill and stroke geometries can also be styled independently to support various color themes. To enable Building Footprints, log into the Cloud console and in our style editor navigate to Buildings and choose ‘Footprints’ under building style.

Industry Optimized Map Styles now include Landmarks and Building Footprints, plus Detailed Street Maps

In January of this year we launched Industry Optimized Map Styles for the travel, real estate, retail, and logistics industries, providing customers with pre-styled map configurations, available via Cloud-based maps styling. Landmarks are now included in all of our Industry Optimized Map Styles and we have turned on Building Footprints in the travel style map.  If you are already an Industry Optimized Map Styles user, these new features will be applied to your map with no action needed from you. If you would like to disable these changes, you can use the style editor to turn off these features.
For Industry Optimized Map Styles only, we are also excited to enable Detailed Street Maps. You may have seen these features in our consumer products at Google I/O, released back in August of 2020 for the consumer Google Maps web and mobile apps. Detailed Street Maps are available in San Francisco, New York, London, and Tokyo, and we are targeting expansion to 50 new cities by the end of 2021.

Detailed Street Maps are on by default for all Industry Optimized Map Styles and we created a new settings menu to change the visibility, as needed. We are working on bringing the full styling capability for Detailed Street Maps features to all Cloud-based maps styles in the future.

Landmarks and Building Footprints as well as the updates to Industry Optimized Map Styles are only available via Cloud-based map styling in the Google Cloud Console and are included in Google Maps Platform pricing. Learn more about how to use Landmarks and Building Footprints and Industry Optimized Map Styles. To get started with Cloud-based map styling, check out our documentation for JavaScript.

For more information on Google Maps Platform, visit our website.

Tradier uses the Apigee API management platform from Google to abstract the legacy complexities of capital markets so that developers can build FinTech applications in an agile, nimble, and quick fashion at minimal cost. The company embodies the evolution of what cloud technology can enable in the form of an API-first business delivered as a service.

The rise of API-powered FinTech

Historically, companies that wanted to build systems, applications, or services to interact with the stock market would have to build an entire brokerage operation from scratch. This would include data infrastructure, compliance infrastructure, and storage capabilities. It could take years and massive capital expense to accomplish everything that was required to be ready to serve customers.

Tradier provides this infrastructure as an API-based service so that the same companies can launch investor applications in as little as a few weeks. This democratized access means that FinTech innovation can come from anywhere, giving the same opportunities to create new products to everyone, from enterprise customers to startups.

“Financial markets are becoming fundamentally decentralized and unbundled,” says Dan Raju, co-founder, CEO, and chairman at Tradier. “The services that large legacy banks and brokerage firms used to offer are being supplanted by Tradier’s microservices and APIs, which power innovation.”

More than 200 companies use Tradier to develop and launch new products, or to add new features and functions that they traditionally would not have offered in existing products. With a large and diverse user base, Tradier faced the challenge of managing its partners in way that helps ensure it can grant credentials, track, monitor, and report in an efficient and equitable manner.

At the same time, the company recognized the inherent value of its partners for their power to leverage Tradier APIs to innovate. Tradier’s fundamental market disruption is the partner ecosystem, where the company is engaged along with its partners to deliver value to the entire ecosystem in the form of new products and services.

Embracing an API-powered ecosystem

Tradier has moved beyond providing great APIs toward engaging its ecosystem. If a customer wants a specific dataset, the company doesn’t automatically build a new product. Instead, Tradier looks to the ecosystem to build the product. With this approach, Tradier has taken its capabilities and multiplied them by hundreds.

“The fundamental difference between thinking about an API ecosystem versus an API product is the difference between being a participant who’s enabling innovation and not just a company delivering a set of technical capabilities,” Raju says.

Tradier takes an outside-in approach toward engaging its API ecosystem. Constantly listening to participants and helping to enable and empower them to create value is fundamental to the company’s business model. Rather than simply focusing on building new capabilities on its own, Tradier listens to what functionalities customers need and facilitates development. In many cases, the ecosystem generates the requested product organically rather than Tradier needing to do it.

“I love APIs because they allow you to empower others to create value. The concept of empowering others to create value along with you is what is the most satisfying, and the most fascinating, thing about APIs,” says Raju.

Delivering value at scale

Tradier handles between 500 million to 1 billion API calls and a billion dollars in transactions a month, and all of them run through the Apigee API management platform. Apigee’s last mile forms the single layer that manages Tradier’s infrastructure, including security, analytics, developer interactions, and execution. The company also uses Apigee to comply with an array of regulatory reporting, mandated by Tradier’s status as a FINRA (Financial Industry Regulatory Authority)-regulated entity.

“Apigee is integral to the Tradier offering. They have been great partners and have always collaborated and enabled us to innovate at a pace that helped Tradier attract developers and innovative companies. We see tremendous potential in the synergy of Apigee and Google as it brings to the market a vast extended capability set based on the Google Cloud Platform.”

Tradier is an API-centric ecosystem that delivers value to an entire set of players where the nucleus is the Apigee API management suite, which helps deliver, innovate, publish, manage, monitor, and secure the ecosystem on a day-to-day basis. Simplicity combined with product evangelism is the key to success in the API space, Raju says.

Tradier’s capabilities to innovate, iterate, and travel the journey with its customers, partners, and developers has yielded many rewards. The company’s long history of working with Apigee has enabled it to assemble a set of people and resources for creating engagement, as well as to create a winning set of APIs for delivering FinTech capabilities.

Considering the transformative future

Looking toward a future in which the financial services industry will experience ongoing disruption, Raju predicts that Tradier will continue to leverage APIs to lead the way.

“I think traditional banks are under attack. They are being replaced by a set of nimble, agile players that are offering a lot of new functionality to customers. This is forcing banks to think about how they can digitize their products through APIs so that they can provide the same functionalities as newer players.”

With companies like Tradier and others offering functionality that used to be in-house and exposing it outside, traditional brokerage firms are also being forced to rethink their model. Raju believes that this line of thinking also extends to the Blockchain.

“Exposing Blockchain-like capabilities through APIs is going to be a disruptive influence, and it will be critical for companies to think about how APIs, and more importantly Blockchain, can create value for us.”

Enterprise application teams need to manage more than just containers in their software supply chain. That’s why we created Artifact Registry, a fully-managed service with support for both container images and non-container artifacts.

Artifact Registry improves and extends upon the existing capabilities of Container Registry, such as customer-managed encryption keys, VPC-SC support, Pub/Sub notifications, and more, providing a foundation for major upgrades in security, scalability and control. While Container Registry is still available and will continue to be supported as a Google Enterprise API, going forward new features will only be available in Artifact Registry, and Container Registry will only receive critical security fixes.

Below, we’ll highlight the key improvements Artifact Registry provides over Container Registry, as well as the steps to start using it today.

A unified control plane for container, OS and language repositories

Artifact Registry includes more than just container images: as a developer, you can store multiple artifact formats, including OS packages for Debian and RPM, as well as language packages for popular languages like Python, Java, and Node. In addition, you can manage them all from a single, unified interface. 

A more granular permission model with Cloud IAM

Artifact Registry comes with fine-grained access control via Cloud IAM. Unlike Container Registry, this allows you to control access on a per-repository basis, rather than all images stored in a project. This enables you to scope permissions as granularly as possible, for example to specific regions or environments as necessary.

Repositories in the region of your choice

Artifact Registry supports the creation of regional repositories, which allows you to put your artifacts and data directly in the location that they’ll be used, allowing for higher availability and speed. In Container Registry, you’re limited to “multi-regions”: for example, the closest multi-region for Australia is Asia. However, with Artifact Registry’s regional support, you can create a repository directly in the Sydney data center.

A pricing model that respects your region

While Artifact Registry’s pricing is still based on a combination of network egress and storage usage, support for regional repositories means that you can choose in what region to host your container repositories. Although per unit storage costs are higher for Artifact Registry, optimizing the locations of your repositories to be hosted in the same region where they are used can result in cost savings, because any network traffic within the same region is not considered egress and is thus free.

Part of a secure supply chain

Artifact Registry was designed from the ground up to integrate into our suite of secure supply chain products. This means that it can optionally use Container Analysis to scan your container images for vulnerabilities as they’re uploaded to Artifact Registry, and works directly with Binary Authorization to secure your deployments.

We’re here to help you migrate

If you already use Container Registry, you can take advantage of all the current and upcoming features of container image storage with Artifact Registry by migrating to it. To help, we’ve prepared the following guides:

• Transitioning from Container Registry provides an overview of how to use Artifact Registry instead of Container Registry in a backwards-compatible way
• Copying images from Container Registry guide you to move container images from an existing repository to an Artifact Registry repository

If you’re currently hosting your container images with a third party, you can begin using Artifact Registry directly, by following the instructions in our guide, Migrating containers from a third-party registry, which shows you how to avoid rate limits on image pulls or third-party outages which can disrupt your builds and deployments.

And if you’re just getting started storing container images, you can begin using Artifact Registry as your image repository right away. To learn how, check out Artifact Registry quickstart for Docker, a guide to using Artifact Registry as a single location for managing private packages and Docker container images.

Join our community 

Our Artifact Registry communities are also great resources to help answer your questions and for guidance on best practices: 

• Ask questions on Stack Overflow using the google-artifact-registry tag
• Visit the Google Cloud Slack community and ask a question in the #artifact-registry channel. If you haven’t already joined the Slack community, use this form to sign up.