WSO2 Open BankingDigital Transformation through PSD2
Seshika FernandoHead - Financial Solutions
OPEN TECHNOLOGY FOR AGILE DIGITAL BUSINESS
2
Build internal and external developer ecosystems with an API marketplace.
Manage identity, security, and
privacy across your digital
business.
Make mobile and IoTdevices integral to
your digital business.
Create real-time, intelligent, actionable business insights and data products.
Platform enable your digital business with “micro-services”
and “micro-integrations”.
Payment Services Directive 2 EU Directive that applies to all Banks operating in the EU that regulates payment services throughout the EU, with a compliance deadline of January 2018
Pain Points
Security cannot be compromised especially for customer data
Lack of clear guidance on implementation
Average length of IT projects is more than time left to comply
Open Banking: Changing the way we transact
Banks expose their customer payment and account data, with customer consent, to Third party Payment Providers (TPPs) via APIs.
TPPPISP/AISP
Bank A
Bank B
Bank C
Merchant
Now PSD2
Bank A
Bank B
Bank C
Merchant
Compliance Requirements
● API Specification○ API Definitions○ Secured API invocation○ API Usage Monitoring
● Strong Customer Authentication○ 2 Factor Authentication (SMSOTP, FIDO, Duo, MePin)○ Adaptive Authentication○ Consent Management
● Incident Reporting○ Security Incident Reporting [Transactions affected,server
downtime,Economic Impact,Reputational Impact]○ Finding an Incident - Anomaly Detection
● API Specification○ API Definitions○ Secured API invocation○ API Usage Monitoring - Per Business unit, per PISP, per customer group
Compliance Requirements - 13th Jan 2018
● API Specification○ API Definitions○ Secured API invocation○ API Usage Monitoring
● API Manager
● API Security + SCA
● API Analytics
● API Monetization
WSO2 Open Banking
Process Flow
Credits to Dinosoft Labs from Noun Project
Checkout Item
Login Page
2 Factor Authentication
Customer Consent
Initiationpayment info
1
2
3
4
PISP
302
5Token 6
Payment Complete
7
Settlement
Demo
Open Banking: The opportunities
Bank A
Bank B
Bank C
Merchant Bank A
Consolidated customer account and payment info across multiple Banks
TPPTPP
Step 1ComplyExpose data securely
Step 2Reclaim LoyaltyBecome TPP
Step 3Digitally TransformOffer services beyond banking
2019 20202018
Plan beyond 2018
WSO2 Open Banking
● API Manager
● API Security + SCA
● API Analytics
● API Monetization
PSD2 Compliance
● API Integration
● Federated Authentication
● Fraud Detection
● API Analytics
● Dashboards
TPP Provider
● Web/Mobile App Suite
● Insight Sales
● Required Integration
Digital
Transformation
Other Financial Solutions
● Fraud Detection
● Real-time Risk Management
● Stock Market Surveillance
Thank You!