Open Banking and PSD2: Are your APIs ready for external testing?
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This document discusses Open Banking and PSD2 compliance for banks. It notes the upcoming deadlines for banks to have external testing facilities by March 2019 and full PSD2 compliance by September 2019. It then provides an overview of the key Open Banking API specifications from the UK and Berlin Group. The document outlines challenges banks may face in compliance and how WSO2 Open Banking can help achieve deadlines through its componentized architecture and regulatory expertise. It argues that Open Banking creates opportunities for banks through expanding distribution channels, enabling upselling and cross-selling, and generating new revenue streams.
Open Banking and PSD2: Are your APIs ready for external testing?
- 1. Open Banking and PSD2 Are your APIs ready for external testing? Seshika Fernando Head of Financial Solutions WSO2 Kaveen Rodrigo Software Engineer - Open Banking WSO2
- 2. ● Regulatory Technical Standards (RTS) entered into force in March 2018 ● Upcoming deadlines ○ March 2019 - Testing facility by all banks Article 30 (RTS) ○ September 2019 - Full PSD2 compliance by all banks Article 38 (RTS) Status Quo
- 3. Key Features Required for Compliance
- 4. Popular Open Banking API Specifications
- 5. Open Banking UK September Specification V3.0 Introduced with two new APIs for confirmation of funds and notifications. November (Expected) Specification V3.1 February Specification V2.0 Revised API changes and support for PSD2 in-scope payment accounts. March Open Banking Directory The Directory helps account providers to verify the identity of regulated TPPs
- 6. Berlin Group NextGEN PSD2 September Specification V1.2 Consent Related Revisions on APIs October Specification V1.3 revisions on APIs and SCA methods. February Specification V1.0 Framework released initially. May Specification V1.1 Minor revisions on APIs
- 7. ● Version 1.3 released in April. ● Latest specification version 1.4 was released last September. ○ Payment and Transfers APIs were aggregated in this release. STET
- 8. ● Lack of regulatory expertise ● Lack of resources to follow the regulatory/spec changes ● Lack of technology components ● Inability to change existing tech ● Lack of specialized skills Key Challenges for Banks
- 9. ● Covers all Regulatory Requirements ● Supports OB UK, Berlin Group and STET specifications ● Componentized Architecture allows Mix & Match ● Integration layer makes it easily pluggable ● Team of Open Banking regulatory experts ● Rich network of European partners WSO2 Open Banking
- 10. Achieving upcoming deadlines with WSO2 Open Banking
- 11. Meeting the March Deadline* Task Duration (days) Discovery, Dev/Test Deployment and Deployment Documentation 5 Implementation - Mock Backends - TPP Onboarding - SCA - Consent Mgmt - TRA - Branding 10 Sandbox Environment - Deployment - Functional Testing - Systems Integration Testing - Security Testing - User Acceptance Testing (UAT) 12 Training 5 Total 32 * With 2 WSO2 Open Banking experts
- 12. Meeting the September Deadline* Task Duration (days) Implementation - Core banking integration - Custom User stores - TPP Onboarding 31 Deployment Automation 4 Testing (DEV/TEST, PROD) - Functional - Integration - Security - Performance - UAT 20 Documentation & Training 5 Total 60 * With 2 WSO2 Open Banking experts
- 13. Open Banking What’s in it for the banks
- 14. Expanding Distribution Channels TPP A TPP BBANK
- 15. Upselling and Cross selling Consolidated customer account and payment info across multiple banks Bank A Bank B Bank C Merchant TPPTPP
- 16. New Revenue Streams Consolidated customer account and payment info across multiple banks Bank A Bank B Bank C Merchant TPPTPP