What Saxo Bank should do and why ?

-Supratika Banerjee

After a thorough analysis of the case of Saxo Bank, I am of the view that Saxo bank should embrace
a hybrid approach, where many but not all parts of the trading platform is enabled to third party
developers but Saxo Bank still retains its channels to the customers alongside with partner channels.

Enabling third party developers to develop applications using the Open API Interface will help Saxo
Bank to act like a Keystone Organisation which helps not only create but also support the ecosystem
which contains Saxo bank, its own services as well as the applications developed by the third party
developers. This has numerous advantages for Saxo Bank as I have analysed below:

 Integrity under check:

Adopting the hybrid approach will enable Saxo Bank, to regulate the repute, quality and
security of the applications that connect to its trading platform.
 Expanding their customer base:
The retention of Saxo Bank’s channels to customers along with partner channels by means of
a hybrid approach, is key to generating power which is fundamental for any ecosystem.
 New Opportunities to meet changing demands:
Enabling some parts of the trading platform will help in providing flexibility for development
of multiple applications without creating a new interface each time. This will result in the
creation of diverse applications to suit the needs of different customers.
 A Prospering Ecosystem through Saxo as a Keystone Organsiation:
Success of the third party developers will boost success of Saxo bank and the developers will
be equipped with a platform to generate some revenue themselves too.
 Retention of Power through the hybrid approach:
The opportunity to collaborate through the hybrid approach, will enable Saxo Bank to retain
its ownership of its core technology platform which is critical to generating power.
 Changing Regulations:
With time, regulations are increasingly becoming more flexible. This can be leveraged
through the use of Open API to access core Saxo Bank technology through applications of
third party developers. This will help revolutionize the Financial Services provided by Saxo
Bank by adding flexible means of access to the services with the same level of security.
Through the Hybrid Approach, Saxo bank may provide UI/UX Flexibility to the third party
developers, and at the same time increase their focus on improved connectivity and
security of the financial services. This will help building robust and highly productive
systems.
 Attract Young Customers:
Young customers are increasingly looking for on the go services. Enabling third party
development through the hybrid approach will help make Saxo bank’s services more
scalable and mobile device friendly while retaining their integrity. This will enable more
young customers to join the Saxo bank customer network and might even encourage young
app developers to explore the development platform for state of the art updates which they
might provide as feedback to Saxo or might implement if they are third party developers.

Addressing potential concerns about third party development:

1. In the income statement of Saxo Bank, their revenue has shown to be steadily increasing
and it is feasible to invest in Open API and its usage documentation and support. Even if
the initial investment in this is high, it is one time and following that the revenue
increase from the benefits will surpass the investment cost.
2. Concerns about the brand loyalty of the entire trading experience can be drafted in the
Terms and Conditions or Agreement with a clause to include Saxo Bank’s branding in all
the apps that connect to Saxo Bank’s Trading Platform via Open API.