These are the slides from my talk at API Days NYC 2020. The talk covers API ecosystems, digital business models, value networks, and a method for mapping business models through value exchange.

1. All contents © MuleSoft, LLC
Matt McLarty, Global Leader of API Strategy
@mattmclartybc
Value Networks in
Open Banking
API Business Modeling through
Value Exchange

2. All contents © MuleSoft, LLC
What is an API Ecosystem?
2
API
Partners
3rd Party APIs
Support &
Platform Teams
Underlying
Assets
Application
Developers
Customers
/End Users
Tools
Applications

3. All contents © MuleSoft, LLC 3
API
API
API
API
API
API Ecosystem: An External View

4. All contents © MuleSoft, LLC
API Products in the Ecosystem
4
The primary goal of API products is to
establish and continuously improve a
sustainable business model that serves
groups of customers and drives
profitability for the product company

5. All contents © MuleSoft, LLC
API business models
5
From API Business Models: 20 models in 20 minutes by John Musser (https://www.infoq.com/presentations/API-Business-Models/)

6. All contents © MuleSoft, LLC
API Ecosystem: Macro View
6
API
API
API
API
API
Internal API Internal API
Pay-per-use
Pay-per-use
Free to use

7. All contents © MuleSoft, LLC
Business model
7
“A business model is how an
organization creates, delivers,
and captures value.”
Alex Osterwalder, creator of the
Business Model Canvas

8. All contents © MuleSoft, LLC
Value network
8
“The collection of upstream
suppliers, downstream channels to
market, and ancillary providers
that support a common business
model within an industry.”
Clayton Christensen, The Innovator’s Dilemma

9. All contents © MuleSoft, LLC 9
From Escaping the Build Trap by Melissa Perri (https://www.oreilly.com/library/view/escaping-the-build/9781491973783/)
Value exchange

10. All contents © MuleSoft, LLC
Value exchanges in business models
10
https://www.thevalueengineers.nl/download/a-business-model-of-the-facebook-ecosystem/
Dr. Jaap Gordijn
Dr. Roel Wieringa

11. All contents © MuleSoft, LLC
Value exchanges in business models
11
Newspaper
(media)
Product
company
Readers ReachMoney
Content
Advertising
money
Freelance
journalists
Content Money/exposure

12. All contents © MuleSoft, LLC
Value exchanges in business models
12
Facebook
Product
company
Users Targeted
reach
Data, content,
relationships,
money
Content
Advertising
money
App
developers
Content,
games Money

13. All contents © MuleSoft, LLC
API value exchange
13
End users
API
consumers
API
provider
Products
&
Services
Data Exposure Time

14. All contents © MuleSoft, LLC
“API manufacturer-supplier” business model
14
End users
Mobile &
web apps
Google
Maps API
Unique data,
best-of-breed
functions
Money, data
Location-enabled
services

15. All contents © MuleSoft, LLC
“API manufacturer-supplier” business model
15
End users
TPP
(e.g. Yolt)
Banks
Account info (data)
payment initiation
(service)
Fees (money)?
Customer interactions
(data)?
End-to-end
financial
process
Funds & fees
(money)?
Customer info &
interactions (data)
Some ideas from https://thepaypers.com/reports/the-open-banking-report-2019-insights-into-the-global-open-banking-landscape-2/r780814

16. All contents © MuleSoft, LLC
“API manufacturer-supplier” business model
16
End users
Bank
(e.g. Starling)
Fintechs
Unique products &
services
Money, reach
Consolidated
services,
security
Money, data

17. All contents © MuleSoft, LLC
“API retailer-wholesaler” business model
17
End users
Mobile &
web apps
Twilio API
Global telco
services,
time-to-market
Money
Money
Telco
Carrier
APIs
Money
Regional telco
services

18. All contents © MuleSoft, LLC
“API retailer-wholesaler” business model
18
End users
Mobile &
web apps
Plaid API
Aggregated
account info,
time-to-market
Money
Money
Banks
Money
Account
information

19. All contents © MuleSoft, LLC
Content
(rental listings),
data
“Aggregator” business model
19
Renters/
vacationers
Airbnb
mobile &
web app
Airbnb API
Aggregated
property listings,
security
Money,
attention,
data
Multiple
listing
service Reach,
moneyProperty
owners

20. All contents © MuleSoft, LLC
Payment targets
“Service aggregator” business model
20
Payors
TPP
Payment
Aggregator
(e.g. TransferWise)
Payment services,
aggregated targets
(reach)
Money, reach
Banks
Money
Payees

21. All contents © MuleSoft, LLC
Data (mortgage
rates), products
(mortgages)
“Product Aggregator” business model
21
Home buyers/
owners
Mobile/
web app
Mortgage
Aggregator
(e.g. intelliMortgage)
Aggregated
mortgage offers,
time
Money,
attention
Banks
Exposure,
moneyMortgage
underwriters

22. All contents © MuleSoft, LLC
API Business Models in Open Banking
API business models
• Standalone API business model: API product companies
• Composite API business model: APIs enable the broader business model
Business model patterns
• “Manufacturer-supplier”
• “Retailer-wholesaler”
• “Aggregator”
• More: payments broker, data hub
Ecosystem thinking
• Map the ecosystem and help it thrive
• Don’t be an invasive species!
22
End users
API
consumers
API
provider

23. All contents © MuleSoft, LLC
More info on value exchange business models...
Blog:
https://blogs.mulesoft.com/biz/management/api-business-modeling-through-value-exchange/
Podcast:
https://soundcloud.com/mulesoft/apis-unplugged-episode-6-api-business-models-value-exchange
The Value Engineers:
https://www.thevalueengineers.nl/

24. All contents © MuleSoft, LLC
API Program Workshops
API-Enabled Digital
Strategy Workshop
“Way of the API”
Workshop
API Technology
Foundation Workshop
API-as-a-Product
Workshop
For more info, visit the MuleSoft API strategy hub and
visit the MuleSoft booth during the break!

25. All contents © MuleSoft, LLC
Thank you