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!