BIAN Webinar; Global Open Banking Initiatives and the ... · Antonio Plais is owner and consultant...

BIAN Webinar;

Global Open Banking Initiatives and the added value of the BIAN Open

Standards

June 29th, 2020

Copyright BIAN 2020 | Banking Industry Architecture Network

A Warm

Welcome

to YOU –

Dialing in

From all

around the

globe!

2

A Warm

Welcome to

YOU –

Dialing in From

all around the

globe!


On Today’s Webinar

• Hans TesselaarBIAN Executive Director

• Antonio PlaisOwner and consultant at Centus Consultoria e Negócios, Brazil

• Arnab MitraBIAN Program Manager

3


Short intro in

Portuguese /

Curta introdução em

português

Antonio Plais is owner and consultant at Centus Consultoria e Negócios, a Brazilian company focused on Enterprise Architecture and Decision Management services and tools. He's working in ICT, marketing and consultancy since 1974, with extensive experience in business strategy, knowledge management, information technology, enterprise architecture and product development. He's a TOGAF and ArchiMate certificated professional and trainer, with graduation in Business Administration and specialization in Marketing.

4


Introduction | Mission

To provide the world with the best banking inter-

operability architecture. To be the banking

technology standard.

Central objectives for IT in the banking industry are

to lower the IT and operational costs of the bank

and help banks mitigate the risks associated with

technology innovation. To provide a trusted

roadmap for constant innovation.

By collaborating and sharing in an open way, the

best expertise across our global ecosystem of

leading banks, technology providers, FinTech

players, academics and consultants to define a

revolutionary banking technology framework that

standardizes and simplifies the overall banking

architecture.

5


Introduction | BIAN & Financial Institutions

6


Introduction | BIAN & Partners

7


Introduction | BIAN & Academic, Standard Bodies and Training Partners

8


Open Banking to Open Finance

June 2020, Arnab Mitra

9


Open Banking Types

11

Regulatory – Mandated

• Drivers

• Increase competition

• Protect consumer data

• Encourage innovation

• Banks in scope, must comply

• FinTechs must be regulated

• Consumer data access only upon

obtaining consent

• Product Scope: Defined

• Standards: Specified & detailed

Open Banking Initiatives Across the World

Market – Driven

• Drivers


• Competitive Advantage

• Cost Reduction

• Banks and/or (Fin)Tech Led

• Product Scope: Varied

• Standards: Voluntary, Industry Networks

Regulatory – Encouraged

• Drivers

• Enhance collaboration


• Financial Inclusion

• Product Scope: Prescribed

• Standards: Guideline, Encouraged


ASPSP (Bank)Trusted Third Party (TPP)Payment Service User (PSU)

eIDAS

Certificate

The PSD2 Open Banking UK Ecosystem


National Competent Authority

(NCA) Register

QTSP (Qualified

Trust Service Provider)

Government

• The ECB creates PSD2

• Country (eg. the UK Treasury) put this into

Law (PSR)

• The Regulator (FCA) & Standards Bodies

(Open Banking UK) implement

Evolution

• Identification: eIDAS

• Authorisation, Scope: NCA Register eg.

FCA (UK)

• Regulations: PSD2, GDPR, eIDAS

TPP Security

12

Open Banking


PSD2 – TPP / Regulated FinTech Qualification Criteria

13

• General Principles

• Identification Details

• Programme of Operations

• Business Plan

• Structural Organisation

• Measures to safe guard Funds of Users

• Governance Arrangements & Internal Controls

• Procedures on Security Incidents & Customer Complaints

• Business Continuity Arrangements

• Security Policy Document

• Identity & Suitability Assessment of persons in management of the TPP

• Professional Indemnity Insurance or Equivalent

All TPPS

AISPs & PISPs

• Process to track and restrict access to sensitive payments data

• Principles on Collection of Statistical Data on Performance,

Transactions & Fraud

• Internal Control mechanisms for AML/CFT

• Identity & Suitability Assessment of persons with Qualified

Holdings in Applicant

• Identity of Statutory Auditors and Audit Firms

Additional for PISPs

TPP: Trusted Third Party / regulated FinTech

AISP: Account Information Service Provider

PISP: Payment Initiation Service Provider

Definitions

Open Banking


PSD2 – EU & the UK

14

• ECB, EBA, FCA (UK), CMA (UK)

• Open Banking, The Berlin Group,

STET, etc…

• ISO20022

Regulators

Standards Bodies

• Banking

Sectors

• Account Information Services:

Accounts, balances, transactions

• Payment Initiation Services:

Domestic, International, Bulk,

Standing Orders

• Card Based Payment Services :

Balance check

Products

• Banks: Offering Cash accounts

with Outgoing Payments

• TPPs: AISPs & PISP - FinTechs

regulated by the NCAs

Participants

• SCA (Multi-factor)

• OIDC & FAPI Compliant (+CIBA?)

• Customer Consent (GDPR)

Security

Consent

The Second Payment Services Directive – Open BankingRegulatory – Mandated

2016 – 2020, Live


Consumer Data Right (CDR) - Australia

15

• Australian Competition &

Consumer Commission (ACCC)

• Data 61 – API Implementation

Regulators

Standards Bodies

• Banking, Energy, Telecom, Others

Sectors

• Phase 1: Current, Savings, Call

Accounts, Cards, Term Deposits

• Phase 2: Loans, Mortgages

• Phase 3 : FX, Business & Asset

Finance, Farm Accounts, Retirement

Accounts, Trust Accounts

Products

• Data Holders: Banks offering any

Phase 1,2,3 Product, classified into

Initial ADIs (Big 4), Accredited ADI,

Voluntary participating ADI, Any Other

Relevant etc.

• Data Recipients: Regulated FinTechs

Participants


• OIDC & FAPI Compliant (CIBA?)

• Customer Consent (CDR)

Security

Consent


2017 – 2022, Ongoing



CDR – Australia – Products

16

• home loan (residential & investment property)

• mortgage offset accounts

• personal loan

Phase 2


2017 – 2022, Ongoing

• savings accounts

• call accounts

• term deposits

• current accounts

• cheque accounts

• debit card accounts

• transaction accounts

• personal basic accounts

• GST and tax accounts

• credit and charge cards (personal)

• credit and charge cards (business)

Phase 1

• business finance

• loan for an investment

• lines of credit (personal)

• lines of credit (business)

• overdrafts (personal)

• overdrafts (business)

• asset finance (including leases)

• cash management accounts

• farm management accounts

• pensioner deeming accounts

• retirement savings accounts

• trust accounts

• foreign currency accounts

• consumer leases

Phase 3



Consumer Directed Finance – Canada

17

• Department of Finance, Canada

• Department of Innovation, Science

and Economic Development?

Regulators

• Banking

Sectors

• Cash, Savings, Cards, Call etc. Accounts?

• Term Deposits?

• Investment Accounts

• Payments Initiation? May be

• Digital ID DoB, SSN, Driver’s license,

health cards, biometric etc.

Products

• Federally Regulated Financial

Institutions

Participants



• Customer Consent

• Dispute Resolution

Security

Consent

Open Banking to Open FinanceRegulatory – Mandated

In Consultation


Open Banking Brasil

18



Open Banking Brasil

19

• Banco Central Do Brasil (Central Bank of

Brazil)

Regulators

• Banking

• Might be extended in the future

Sectors

• Data on products and services (location of branches

and other access channels, product characteristics,

contractual terms and conditions, financial costs, among

others)

• customer personal data (name, filiation, address,

among others)

• customer transactional data (data related to deposit

accounts, credit operations and other products and

services contracted by customers, among others)

• payment services (initialization of payments, transfers

of funds, payments of products and services, among

others)

Products

• Financial institutions

• Payment institutions

• Other institutions licensed by the Central Bank of Brazil

• Initially Required for S1 & S2 Banks only

Participants

• SCA (Multi-factor)?


• Customer Consent

Security

Consent

Open Banking to Open FinanceRegulatory – Mandated

2019 – 2021, Ongoing

Watch the Space..

Beyond

Phase IV

Expansion of the scope of covered data

• foreign exchange operations

• investments,

• Insurance

• open pension funds,

• Etc…

October 2021

Phase III

Sharing of services

• Initiating payment transactions

• Forwarding loan proposals

August 2021

Phase II

Sharing of

• customers’ or their representatives’ registry information

• the customers’ transactional data related to products and services listed in Phase I

May 2021

Phase I

Public access to information from participating institutions regarding their customer service channels and their products and services related to:

• demand deposit

• savings accounts,

• payment accounts

• credit operations

November 2020

Open Banking Brasil – Regulatory Roadmap

• Initially Required for S1 & S2 Banks only20


APIX Innovation Lab – ASEAN

21

• Monetary Authority of Singapore (MAS)

• International Finance Corporation (World

Bank Group)

• ASEAN Bankers Association

• Association of Banks in Singapore (ABS)

Standards Bodies

• Banking

Sectors

1. All Banking Products

2. Innovative solutions with FinTech

products beyond banking

3. ABS – MAS: Finance-as-a-service

API Playbook

Products

• Financial Institutions & FinTechs

participating in the APIX API

Marketplace

Participants

• API Level Security – tokens, and

as mandated by publisher

• SCA?

Security

Consent

Regulatory – Encouraged

Live



Open Banking – USA

22

• Financial Data Exchange (FDX) – Detailed

APIs

• NACHA (AFINs Interoperability Standards)

• Consumer Financial Protection Bureau

• Banking Industry Architecture Network BIAN

Standards Bodies

• Banking

Sectors

• BIAN: All Banking Products across all LoBs –

Retail, Corporate, Investment, Wealth etc.

• FDX: Accounts & Transactions - Deposit,

Investment, Loan, Loc, Annuity, Insurance; Internal

Bank Transfers, Tax Forms

• NACHA (AFINS): Account Validation, Bank Contact

Information, ACH Payment Initiation, Transaction

Status, B2B Interoperability (Coming soon)

Products

• Financial Institutions & FinTechs

implementing the FDX and BIAN standards

• Voluntary

Participants

• SCA (Multi-factor) ?


• Customer Consent ?

Security

Consent

Market Driven

Ongoing

Ideas

External

Technologies

Market

Other Industry

Markets



Open Banking – China

23

• No Regulatory involvement

• Banks FinTechs have agreed mutual APIs

/ interfaces

Standards Bodies

• Banking, Insurance

Sectors

1. Bank Information

2. consumer and business accounts

3. Lending

4. Payments and settlement

5. Investment and wealth management

6. Foreign currency exchange

7. Rewards

8. More ..

Products

• Large Banks

• FinTechs with ”Super Apps”

• Small banks leverage “Super Apps”

• Voluntary

Participants

• SCA (Multi-factor) ?

Security

Consent

Market Driven

Ongoing

* Number of Customers


Alipay 400mn* WeChat 600mn*

SPD Bank

• 400+ API endpoints

• 200+ Business Partners

• 3.3mn API calls /day

Source:


Open Finance - UK

24

• The Financial Conduct Authority, UK

• HM Treasury?

• Government Digital Service?

• Department for Digital, Culture, Media

& Sport ?

Regulators

Standards Bodies

• Banking, Insurance

Sectors

• Read: Various financial products &

transactions: Savings, Mortgages,

Consumer Credit, Investments,

Pensions, Insurance etc.

• Write: Initiate transactions on the

customer’s behalf: payments,

account switches, investments, credit

applications etc.

• Digital Identities?

Products

• Banks: Offering Cash accounts with

Outgoing Payments

• TPPs: AISPs & PISP - FinTechs

regulated by the FCA

• Insurers?

Participants


• OIDC & FAPI Compliant (+CIBA?)

• Customer Consent (GDPR)

Security

Consent

Open Banking to Open Finance Regulatory – Mandated

In Consultation


A DEEPER LOOK

Regulatory – Mandated: PSD2 / Open Banking UK

Regulatory – Encouraged: ASEAN Financial Innovation Network (AFIN)

Market Driven: FDX – BIAN, USA

25


The PSD2 | Open Banking UK Standards

26



PSD2 | CDR – Banking Product, Transaction & Consumer Data Sharing

TPP

Data recipient

Consumer

eBanking

Online & mobile

APIs

1. Request banking product,

transaction & customer Data

3. Authenticate2. Setup account access consent

5. Request data4. Authorise Consent

Bank

ASPSP / Data Holder

PSD2 | CDR

TPP / Data Recipient: Third Party Provider / regulated

FinTechASPSP / Data Holder: Bank / ADI – Accredited Deposit Taking Institution

Definitions

27



PSD2 – Payment Initiation

TPP

Consumer

eBanking

Online & mobile

APIs

1. Agree Payment Order Initiation

3. Authenticate

4. Authorise Consent

Bank / ASPSP

PSD2

TPP / PISP : Third Party Provider / regulated FinTechASPSP : Bank

Definitions

2. Setup Payment Order Consent

4. Confirm Funds

5. Create Payment-Order

6. Get Payment-Order / Consent Status

28



PSD2 – AIS Journey

29


FinTech Bank FinTech


PSD2 – PIS Journey

30


FinTech FinTechBank


PSD2 | CMA | Open Banking UK Highlights

31



Request to Pay

32


RTP – High level architecture

EAP: ShopEAP: Payer’s

ApplicationBiller’s RSP Payer’s RSP

Biller’s BankPayer’s Bank

PSD2

or

Bank as RSP

PSD2

or

Bank as RSP

Seller Buyer

Bank Transfer

Card

Cash

Request to Pay

SEPA Instant Credit

EAP: End user Application Provider

RSP: Repository Service Provider

Definitions

33


APIX Innovation Lab – ASEAN

34

Open BankingRegulatory – Encouraged

Live

• Build market credibility

• Connect with qualified clients

• Minimize the time and cost to develop prototypes

and PoCs on our secure platform

• Raise your visibility with investors

• Protect your IP; ensure regulatory compliance

FinTechs

• Work with credible FinTechs on our secure platform

• Create successful prototypes in days on our secure

platform

• Harness the knowledge of the community

• Raise your visibility with investors

• Protect your IP; ensure regulatory compliance

Financial Institutions294* 51*

*Data as of June 23, 2020; Source: https://apixplatform.com/landing

https://apixplatform.com/landing


ASPSP (Bank)Trusted FinTechConsumer

Certificate

The BIAN FDX JPMC Collaboration – Use Case

Open Banking Register

• Consent based Account Data (Cash, Term deposits,

Loan, Investments etc.) sharing based on the FDX

API specifications

• Using Next Gen Core Banking provider

Use Case

• A universal directory linking Banks, FinTechs, TPPs

covering Open Banking directories

• Identity & Access Management model using BIAN SDs

• Bank, FinTech? and Directory? components to be

modelled using BIAN Service Domains

Features

Market Driven

Ongoing

35


China – Use Case

Market Driven

Ongoing

Source:36

Market Driven

Ongoing


A MARKET DRIVEN STANDARD – BIAN

Open Standards

Value Proposition

Service Landscape

BIAN Artefacts

Business Capability Models

Developer Portal

37


Q. Open Standards in Banking?

A. BIAN

Ideas

Alternative

Market

External

Technologies

Market

Other Industry

Markets

Ideas

Alternative

Market

External

Technologies

Market

Other Industry

Markets

Monolith

Closed Innovation

Bank BIAN

Microservices

External BIAN

Microservices

Open Innovation

38


I

IT Strategy• Standards based

• Best of breed

• Rationalization

Organizational Drivers• Platform Economy

• Agile Banking

• Customer Intimacy

• OPEX

Technical Drivers• FinTech Integration

• Plug & Play

• Data Driven AI

• Non-overlapping SL

Business Drivers• New Revenue Streams

• Customer Satisfaction

• Cost Leadership

• Compliance

Value Proposition

39


Above the Glass

Below the Glass

Experiences RegulationEcosystems

Processes ControlOperations

Regulation

B2B/B2C

A2A

B2B/B2C+

40


Finance & Risk Management

Operations Products

Business Development

Customers Channels

Financial Control

Group Treasury

Credit Risk

Regulatiory ComplianceMarket Risk

Operational Risk

Solution Devel.

Marketing & Development

Product Management

Channel Management

Models & Analytics

Financial Statements

Financial Control

Financial Compliance

Enterprise Tax Admin

Approved Supplier Directory

Company Billing & PaymentsCorporate Treasury Analysis

Corporate Treasury

Asset Securitization

Bank Portfolio Analysis

Bank Portfolio Admin

Guideline Compliance

Regulatory Compliance

Compliance Reporting

Gap Analysis

Credit/Margin Management

Production Risk Models

Operational Risk Models

Economic Capital

Business Risk Models

Regulatory & Legal Authority

Regulatory ReportingCredit Management

Limit & Exposure Mgmt

Position Management

Counterparty Risk

Fraud/AML Resolution

Market Research

Customer Portfolio

Segment Direction

Market Analysis

Competitor AnalysisProduct Portfolio

Branch Portfolio

Channel Portfolio

Market Risk Models

Liquidity Risk Models

Systems Administration

IT Stds & Guidelines

Development Environment

System Development

Production Release

Fin Inst.Valuation Models

Contribution Analysis

Resource Management

Business Direction

IP & Knowledge

Unit Management

Business Unit Fin Analysis

Business Unit Financial Ops

Business Unit Accounting

Business Unit Direction

Business Unit Management

Buildings & Equipment

Site Operations

Site Administration

Equipment Administration

Equipment Maintenance

Utilities Administration

Building Maintenance

Procurement

Fixed Asset Register

Platform Operations

System Deployment

Systems Operations

Platform Operations

Systems Help Desk

Systems Assurance Internal Network Operation

Human Resources

Employee Assignment

Employee Data Mgmt

Empl/Contractor Contract

Employee Certification

Employee Evaluation

Empl Payroll & Incentives

Travel & Expenses

Employee Access

Employee Benefits

Workforce Training

Recruitment

Business Direction

Corporate Relations

Corporate Services

Organizational Direction

Property Portfolio

Internal Audit

Legal Compliance

Asset & Liability Mgmt

IT Systems Direction

HR Direction

Corporate Strategy

Corporate Policies

Product & Service Direction

Continuity Planning

Corporate Communications

Corp Alliance/Stakeholder

Corporate Relationship

Investor Relations

Security Advisory

Security Assurance

Credit Risk Models

Customer Behavior Models

Fraud Models

Business Architecture

Management Manual

Intellectual Property Port

Knowledge Exchange

Contribution Models Trading Models

Channel Activity Analysis

Financial Message Analysis

Central Cash Handling

Business Development

Brand Management

Advertising

Promotional Events

Prospect Campaign Mgmt

Prospect Campaign Design

Customer Campaign Mgmt

Customer Campaign Design

Customer Surveys

Case Root Cause Analysis

Sales Planning

Contact Center Management

Product Inventory Item Mgmt

Branch Network Mgmt

E-Branch Management

Advanced Voice Svs Mgmt

ATM Network Mgmt

Branch Currency Mgmt

Product Design

Product Deployment

Product Training

Product Quality Assurance

Information Provider Admin

Servicing Activity Analysis

Branch Location Mgmt

Quant Model

Market Data Switch Adm

Product Directory

External Agency

Commission AgreementSyndicate Management

Sub Custodian Agreement

Product Broker Agreement

Product Service Agency Contractor/Supplier Agmt

Corresp Bank Rel Mgmt

Interbank Relationship Mgmt

Custody, Collateral & Documents

Document Services

Archive Services

Custody Administration

Collateral Allocation Mgnt

Collateral Allocation Admin

Collections

Account Recovery

Accounting Services

Financial Accounting

Customer Tax HandlingPosition Keeping

Accounts Receivable

Account Reconciliation

Fraud Detection

Reward Points Account

CommissionsCustomer Position

Clearing & Settlement (Payments)

Order Allocation

Settlement Obligation Mgmt.

Payments Execution

Transaction Engine

Correspondent Bank

Cheque Processing

Corresp.Bank Data Mgmt

Payment OrderCounterparty Administration

ACH Fulfillment

Card Financial Settlement

Card ClearingCard eCommerce

Corporate Banking

Corporate Trust Services

Credit Facility

Cash Mgmt & Account Svs

Cheque Lock Box

Factoring

Direct Debit Mandate

Direct Debit

Project Finance

Corporate Current Account

Trade BankingLetter of Credit

Bank Guarantee

Trade Finance

Bank Drafts & Trvl. Checks

Market Operations Market Trading

Stock Lending/Repos

Securities Fails Processing

Trade/Price Reporting Corporate Events

Financial Inst ValuationSecurities Dlvry & Rcpt Mgmt

Trade Confirmation Matching

Trading Book Oversight

Dealer Workbench

Market Making

Program Trading

Traded Position Mgmt

Market Order

Quote Management

Suitbility Checking

Credit Risk Operations

Market Order Execution

Advisory ServicesInvestment Products

Corporate Finance

M&A Advisory Corporate Tax Advisory

Public Offering

Private Placement

Mutual Fund Administration

Hedge Fund Administration

Unit Trust AdministrationECM/DCM

Consumer Advisory Services

Consumer Banking

Currency Exchange

Payment InitiationBrokered Product

Current Account

Sales Product

Trust Services

Service Product

Investment Svs

Investment Portfolio Planning

Investment Portfolio Analysis

Investment Portfolio Mgmt

eTrading Workbench

Consumer Investments

Customer Orders

Customer Case Mgmt

Customer Case

Card Case

Customer/Servicing Order

Party ReferenceParty Data Management

Location Data Management

Custmer Ref Data Mgmt

Relationship MgmtCustomer Relationship Mgmt

Cust Prod./Service Eligibility

Customer Agreement

Customer Event History

Customer Behavioral Insights

Customer Credit Rating

Sales Product Agreement

Customer Precedents

Customer Proposition

SalesCust Campaign Execution

Party Lifecycle Management

Product Matching

Customer Offer

Product Expert Sales Support

Lead/Opportunity Mgmt

Product Sales Support

Spec/Discount Pricing Conds

Prospect Campaign Exec

Distribution

CorrespondenceBranch Currency Distribution

Product Inventory Distribution

Servicing

Servicing Issue

Contact Center Operations

Point of Service

Interactive Help

Servicing Event History

Informtn. Providers

Information Provider Ops

Market Information Mgmt

Financial Market Analysis

Financial Market Research

Market Data Switch Ops

Financial Instr Ref Data Mgmt

Public Reference Data Mgmt

Cross Channel

Channel Activity History

Customer Profile

Contact Routing

Contact Dialogue

Party Authentication

Transaction Authorization

Customer Access Entitlement

Contact Handler

Customer Workbench

Channel Specific

Financial Gateway

Branch Location Operations

E-Branch Operations

Advanced Voice Svs Ops

ATM Network Operations

Card Terminal Operation

Card Terminal

CardsCredit/Charge Card

Card Authorization

Card Capture

Merchant Relations

Card Billing & Payments Merchant Acquiring

Card Network Participant

Loans & Deposits

Deposit Account

Loan

Leasing

Syndicated Loan

Leasing Item Administration

Underwriting

Corporate Lease

Consumer Loan

Merchandising Loan

Fiduciary Agreement Savings Account

Mortgage

Corporate Deposits

Operational Services

Issued Device AdminDunning

Open Item Management

Disbursement Rwd Points Awards & Red.

Customer Billing

Issued Device Tracking

Product Combination

Card Transaction SwitchDelinquent Account

Card Collections

BIAN Service Landscape v8.0 and API Coverage

41


BIAN Artefacts

42

2 - Business ScenariosDefine business context for API access

1 - WireframeScope Service Domains & External

Boundaries

3 - SD Extension TemplatesAdd definition to Service Domains’ services,

events and information

4 - Data ModelDefine business terms (map to available

data standards)6 - Message Mapping

(background)Map to any available message

standards

5 – BIAN API Specification

ISO20022 &

OMG/FIBO

(Augmented)


Business Capability Models & Service Domains

Possible usage:

With the connected model it is possible

to indicate several aspects, e.g.

• Degree of digitalization of the

capabilities

• Degree of change flexibility

• Degree of API readiness

• Cost

• Technology Risk

• IT Complexity

• Level of Legacy

Investment advice

Investment ordering

Discretionary portfolio

management

Position keeping

& Asset servicing

Brokerage

Clearing

Custody

Business Capabilities

Investment advice

Management

Investment ordering

Management

Investments portfolio

management

Investment execution

Investment Brokerage

Settlement Processing

Custody management

Investment product

management

Investments position

management

Agency administration

Securities transfer

management

Investments operation

contract

Investment Reporting

Investments data

interfaces

Service Domains

Se

rvic

es, A

PI’s, A

pps

43


143 Service Domain MS APIs

16 API’s with ISO Mapping

>1250 Business Capabilities

>2500 Unique Business Components

Version 2.0 Free to Members and Non-Members

Swagger and Microservice Source Code Included

Open Source Contribution Model

Available at Portal.BIAN.ORG

Next Target: 170, Q4 202044


TO OPEN FINANCE

ILLUSTRATIVE BUSINESS SCENARIOS

Corporate Customer Onboarding

Mortgage Underwriting

Customer Upgrade – Product Upsell / Retail to Wealth

45

B

FT

AI

BIAN Service Domains

AI Models

FinTechs


To Open Finance

46

Bank 1

Bank 2

Current

Mortgages

Savings

Loans

Jane

CDR AI

FinTech

Customer

Onboarding

Mortgage

Underwriting

Customer

Upgrade

…


Use-Case1 : Corporate Customer Onboarding

Validate

Submitted

Documents

Customer Due

Diligence

Register

Party

Credit

Process

Legal

Contract

Contact DialogueParty Lifecycle Management

Document ServicesParty Data

ManagementCustomer Credit

RatingLegal Compliance

Execute,

Analyse,

Complete

Onboarding

Request

Retrieve

Corporate

Customer

Details

•Smart Analytics

•Document Processing •Credit Analytics

Party Lifecycle

ManagementB

FT

AI

• KYC & KYB

• Related parties &

associated officers

• PEP, Global Sanctions list

• AML

47

OpenFinance?


Use Case 2: Mortgage Underwriting – Part 1

Get/Review

Customer

Credit Score

Get Mortgage

Lending Risk

Model

Review &

Add

Conditions

Conduct Regulatory

Compliance

Checks

UnderwritingCustomer

Position

Customer Credit

Rating

Collateral Asset

Administration

Credit Risk

Models

Regulatory

Compliance

Get Overall

Customer

Position

Get

Collateral

Risk

•Smart Analytics•Credit Risk•Collateral Risk

CDR Aggregator

B

FT

AI

48


Use Case 2: Mortgage Underwriting – Part 2

B

FT

AI

Adjust Offer

(if required) Approve

LoanConduct

Underwriting

Audit

Verify against

Fraud Alert

Rules, Models

& Scanners

Verify Correct

Execution of the

Mortgage Loan

Process

Review

Conditions

Second

Review

UnderwritingFraud DetectionGuideline

ComplianceInternal AuditUnderwriting Underwriting Underwriting

•Outlier Detection

•Document Processing

•Document Processing

49


Use Case 3: Customer Upgrade – Product Upsell / Retail to Wealth – Part 1

Retrieve

Customer

History

Conduct

Periodic

Customer

Analysis

Update

Customer

History

Get Current

Products & Services

Update Eligibility for

Additional Products

& Services

Customer Relation Management

Party Lifecycle Management

Customer Behavioral Insights

Customer Event History

Party Data Management

Verify Bank

Customer

Determine

Customer

Qualification

Customer Product Service Eligibility

Update

Customer

KYC

Party Data Management

•Smart Analytics•Transaction Analytics

CDR

Aggregator

•Product Recommendation

B

FT

AI

50


Use Case 3: Customer Upgrade – Product Upsell / Retail to Wealth – Part 2

51

Get Applicable

Products from

Other Banks

Create

Opportunity

Discuss Financial

Profile & Goals

with Customer

Information Provider Operation

Product MatchingLead &

Opportunity Mgmt

Prepare

Investment

Advice

Determine Next

Best Product to

Sell

Contact DialogueCustomer Relation

Management

•Next Best Action•Product

Recommendation

B

FT

AI

51


More on BIAN

June 2020, Hans Tesselaar


Freemium

BIAN’s Internal Wiki and Official Homepage

53 Copyright BIAN 2020 | Banking Industry Architecture Network


2020 - Planned BIAN Open Webinar

54

Complimentary BIAN Webinar:

Introduction to the BIAN Landscape and some testimonials of BIAN implementations

Open Banking is a hot topic for financial

institutions all over the world. The ultimate

objective is to exchange financial information

and information services between players in this

fast changing eco system.

BIAN, the Banking Industry Architecture

Network, provides an Open Banking Reference

Architecture and framework that can leverage

and speed up standardization of semantic Open

July

1

4pm - 5pm (CEST)

10am - 11am (EDT)

Can´t make it on July 1?

Webinar explaining PoC on

Coreless Banking

July 14th 4pm – 5pm (CEST)

10am – 11am (EDT)

Webinar on BIAN API Usage at

a US Bank

July 28th 4pm – 5pm (CEST)

10am – 11am (EDT)


▪ Fees (annual membership)

▪ Software / Tech vendors / Integrators

(250 employees or more)

▪ EUR 30.000,-

▪ Banks / FI’s that are not vendors

▪ EUR 20.000,-


(less than 250 employees)

▪ EUR 10.000,-

▪ Federal Banks / Central Banks

▪ EUR 10.000,-


(less than 50 employees)

▪ EUR 5.000,-

▪ Academic Partners

▪ EUR 0,-

Member driven organization

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Copyright BIAN 2020 | Banking Industry Architecture Network56

Questions?Please stay muted and type

your Questions in the righthand

bar, or send them to

[email protected]

56

BIAN Webinar; Global Open Banking Initiatives and the ... · Antonio Plais is owner and consultant...

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Transcript of BIAN Webinar; Global Open Banking Initiatives and the ... · Antonio Plais is owner and consultant...