![OBIE Requirements - API Flows
The standard
customer
journey in
simplified terms,
made up of these
3 Core Service
Requests using
APIs
Customer consents to:
• Account Information
• Payment Initiation
• Card Based Payment Instrument
API: Application Programming Interface
[a] one party’s computer program the
capabilities may be used by other computer
programs
[b] APIs are the prime tool for delivering
Open Banking
Mimi Ajayi on LinkedIn, 15.Feb.2019](https://image.slidesharecdn.com/openbankingapiscasestudiesforsnrstakeholders-190215104236/85/Open-Banking-APIs-with-case-studies-for-senior-stakeholders-4-320.jpg)
Open Banking APIs with case studies for senior stakeholders
- 1. Open Banking & APIs - Overview for Senior Stakeholders - Mimi Ajayi Digital Product Manager 20.Jan.2019
- 2. I will cover • Open Banking: summary • Open Banking: standard Customer Journey with APIs • API ecosystem: typical flow of activities • Case Studies: non-banking, banking • API Considerations & Recommendations Mimi Ajayi on LinkedIn, 15.Feb.2019
- 3. Open Banking - summary OBIE MAIN ACTORS • Open Banking Implementation Entity (OBIE) • Competition & Markets Authority (CMA) • EU Payment Services Directive (PSD) • Financial Conduct Authority (FCA) CMA-9 Terminology Criteria Activities Common Terminology • ASPSP: banks, building societies, credit card companies, including CMA-9, top 9 mandated banks. • PSU: payment service user i.e. customer • TPP: third party apps customers use for e.g. budgeting, SME book-keeping, accounting, capital or loan or tax services; may be fintechs or organisations authorised and regulated by FCA • Criteria & Activities: specific and regulatory-driven per actor Mimi Ajayi on LinkedIn, 15.Feb.2019
- 4. OBIE Requirements - API Flows The standard customer journey in simplified terms, made up of these 3 Core Service Requests using APIs Customer consents to: • Account Information • Payment Initiation • Card Based Payment Instrument API: Application Programming Interface [a] one party’s computer program the capabilities may be used by other computer programs [b] APIs are the prime tool for delivering Open Banking Mimi Ajayi on LinkedIn, 15.Feb.2019
- 5. Typical API ecosystem - Banking PSU: • registers with TPP & gives Consent • sends request via TPP TPP* PSU TPP App using Open Banking, e.g. AISPs, CBPIIs, PISP TPP Developer in advance • registers their App with ASPSP Portal • receives access credentials • tests Endpoints, using uses SOAP or REST • confirms Live APIs TPP App receives PSU request ASPSP forwards Confirmation to TPP TPP processes data for PSU, delivers to PSU device 1. TPP App forwards PSU Consent, Authentication and Request via API 2. ASPSP: • receives TPP request with Consent and confirms Authentication • processes Endpoint START END Mimi Ajayi on LinkedIn, 15.Feb.2019
- 6. API Case Studies: Non-banking, Banking Government Digital Service (GDS) research: • HMRC providing APIs to Payroll sector CMA-9 Banks and other financial sector organisations: • Own portal with API Exchange to register and authenticate entities* meeting both FCA and OBIE criteria • Developer Zone & Sandbox • Knowledge Base and Resources to support Developers Opportunities: • Collaboration, Co-creation, Entrepreneurial propositions, Innovation and Inclusive Design • Legal Responsibilities to Vulnerable Clients: CMA-9 to identify & protect Mimi Ajayi on LinkedIn, 15.Feb.2019
- 7. Digital Banking API Considerations API types • Private • Partner • Membership • Acquaintance • Public API business models • API Marketplace • Account Aggregators • Independent Advisor • Cross-industry collaboration • Hackathons / Crowdsourcing • Bank + Fintech collaboration • Banking As A Service (BaaS) • White Label Product Vendor • Openness at the Core Considerations lead to Recommendations … Mimi Ajayi on LinkedIn, 15.Feb.2019
- 8. Digital Banking Proposition API Strategy Recommendations • Assess current state • Considerations for future state • API catalogue potential • Monitoring Framework & OBIE Issues • Account Privileges • Updating Endpoints • Managing Certificates • FCA & CMA Scorecard: published on Monitoring, Investigation, Resolving Issues, SLAs • Culture of Continuous Improvement • Keeping ahead of Customer Trends Mimi Ajayi on LinkedIn, 15.Feb.2019
- 9. … and finally Any Questions? Mimi Ajayi on LinkedIn, 15.Feb.2019
- 10. The END Mimi Ajayi on LinkedIn, 15.Feb.2019
Editor's Notes
- #5: API: Application Programming Interface [a] a mechanism that allows the capabilities of a computer program to be used by other computer programs [b] it is the prime tool for delivering Open Banking At the core of all Open Banking customer journeys is the mechanism by which the PSU gives consent to a TPP (AISP or PISP or CBPII) to access account information held at their ASPSP or to initiate payments from their ASPSP account. In general, simplified terms, the consent request is initiated in the TPP domain (step 1 right). The PSU is then directed to the domain of its ASPSP for authentication (step 2 right). Then, once authentication is complete, the ASPSP will be able to respond to the TPP’s account information or payment initiation request and redirect the PSU back to the TPP for confirmation and completion of the journey (step 3 right).
- #6: TPP* must be registered with and authorised by Financial Conduct Authority (FCA) for OB activities, also enrol with OB Directory AISP: Account Information Services are methods that consumers and companies can use to get a 360 degree view of their finances. Parties providing this tool are Account Information Service Provider AISPs CBPII: Card Based Payment Instrument Issuer PISP: Payment Information Service Provider ASPSP: Accounting Standard Payment Service Provider i.e banks, building societies, credit card companies
- #7: Entities* using Bank’s own portal with API Exchange: other banks, fintechs, aggregators, product comparison platforms, budgeting and accounting providers, tax service providers, PISPs and CBPIIs which must meet FCA and OBIE criteria to register
- #8: As-Is state vs. considerations for To-Be state: API customer journey, pain points, SLAs, KPIs, KRIs and API Strategy
- #9: As-Is state vs. considerations for To-Be state: API customer journey, pain points, SLAs, KPIs, KRIs and API Strategy
- #10: As-Is state vs. considerations for To-Be state: API customer journey, pain points, SLAs, KPIs, KRIs and API Strategy
- #11: As-Is state vs. considerations for To-Be state: API customer journey, pain points, SLAs, KPIs, KRIs and API Strategy