Open Banking Live - Finconecta · 2020-02-12 · Open Banking APIs are now being created on all...

Open Banking Live

1

What is Open Banking Live?

Open Banking Live is a turnkey solution that allows FinancialInstitutions to comply with local regulation around Open Banking as well as benefiting from and monetizing this effort.

Open Banking Live provides the know how and the necessary technology to effortlessly move Financial Institutions into this new approach to financial services .

AANDB TECH, INC. - Strictly confidential. Not for further distribution. 2

But first,What is Open Banking?


Open Banking APIs are now being created on all continents. They are either initiated by regulatory initiatives, e.g. PSD2, or by market-driven standards.

The aim of the regulators is twofold - to open up payments to non-banks and facilitate alternative business models; and to promote consumer protection and increase pressure on suppliers to create fairer price structures. The EU, Hong Kong and Australia are examples governed by regulatory requirements. Mostly, these focus on payment transactions and only a limited range of banking services.

It’s clear that Open Banking is much more than just a “buzzword”. It marks a global evolution in the financial market, which will gather increasing momentum with or without regulatory requirements.

The development of an Open Banking infrastructure has the potential to directly impact the economic growth of a country, by allowing for a

more competitive, innovative and inclusive financial sector.The Concept

As the evolution of technology and finance advances, new ways of interacting with existing players arise. This includes Open Banking, a new model to engage customers, offer them new products and services, and work with third parties to bring these new propositions to market.

Based on APIs made available by local banks, third parties can offer financial services to these banks’ account holders and connect with these banks’ core banking systems, provided the account holders provide their consent.

Open Banking is gradually being adopted across the world in specific markets, due to initiatives from either the regulator(s) and/or key market participants.


Transparency of Customer Data● Subject to customer consent, client data held

within banks will increasingly be made available to third parties.

Lifestyle Integration ● Banking transactions can be originated, provided

and completed by third parties, integrating banking more closely with the life of the customer.

Personal and Real-time Engagement● With improved access and greater reliance on

customer data, Open Banking enables in-context, real-time, hyper-personal engagement.

Benefits ofOpen Banking Live

Expanding Customer Reach● Open Banking enables banks to increase reach

through new channels and find new ways to meet unbanked and underbanked customers.

Create New Revenue ● With greater reliance on data, banks will be able to

generate deeper consumer insights and create a value proposition that enhances their products and services offerings.

Continuous Innovation● With the help of more agile third parties, banks are

able to innovate much faster.

KEY BENEFITS FOR BANKS KEY BENEFITS FOR CUSTOMERS

5AANDB TECH, INC. - Strictly confidential. Not for further distribution.

North America:Initiatives by US Treasury Department,US Consumer Financial ProtectionAgency, major banks

Latin America:Mexico continues to be the open banking hotspot for LATAM;Brazil and Colombia lead efforts

Europe & UK:PSD2 initiates movement; UK Open Banking Standard; spreads throughout Europe via pan-European initiatives

Africa:Central Bank of Nigeria places open banking on its Payments Vision Statement (PSV) 2030, efforts by Open Banking Ng is to partner with multiple players through a formal initiative; ; Fintechs pushing Open Banking in South Africa; Efforts underway in Rwanda based on PSD2 model.

Asia/Pacific:Singapore and Hong Kong in the vanguard;Many other countries advancing the agenda

Oceania:Committed efforts and pilots in Australia and New Zealand

6

World InnovationOpen Banking around the world

Middle East:Bahrain makes claim to implementing Open Banking

AANDB TECH, INC. - Strictly confidential. Not for further distribution.

7

Open Banking Evolution

Banks in control of all aspects of the value chain

Technology is imperative, rather than differentiator

Referred to as “Open Banking”

Source: INNOPAY Analysis

Unbundling of financial services with lower requirements

Emergence of tech enabled financial service providers

Customer data aggregation outside banks by tech firms (e.g. via screen scraping)

Mandatory, user consent-based access to payment accounts for authorized third-party providers (“TPPs”)

Regulatory push for API standards to meet compliance requirements

APIs pave the way for new ways to compete, limited to account information and payments

Rich API functionality beyond regulatory compliance

API-enabled integration and collaboration between (A) customers, TPPs and banks and also (B) between (just) third-party providers and banks

Customer data ownership and consent management drives transparency, customer choice and “control”

Rebundling of financial services through partnership ecosystems

Emergence of bank-operated marketplaces to leverage their client base and share revenues with TPPs

IntegratedBanking

Unbundled Banking

Basic Open Banking(e.g. PSD2)

Advanced Open Banking

Marketplace Banking

** COUNTRY SPECIFIC **We are here


8

What does Open BankingRequire?

Depending on each market’s regulatory framework, Open Banking requires financial institutions to:

● Develop standardized Application Programing Interfaces (APIs) to allow easy integration by TPPs

● Maintain an API management tool to guarantee a secure and efficient access

● Adopt an authentication protocol for TPPs as well as end consumers

● Offer an API Sandbox to allow TPPs to test their solutions prior to going live

Banks share their clients’ data and have authorization to access their credentials with different third-party solutions.


Now,What does Open Banking Live offer?


Provides FIs with the infrastructure for the transition to open banking, developing standardized Application Programing Interfaces (APIs) to allow easy integration by TPPs

Offers FIs alternative digital solutions to improve processes & products

Maintains an API management tool to guarantee a secure and efficient access

Offers an API Sandbox to allow TPPs to test their solutions prior to going live

Open Banking Live provides open and secure APIs, which give consumers the option of granting access to authorized external providers to their bank account data.

Needs

10

Depending on each market’s regulatory framework, Open Banking Live:

4

1

2

3


4

1

2

3

Open Banking LiveModalities

11

Open Banking Live

Open Banking Live Pro

In order to support Financial Institutions in their journey to meet the Open Banking technology requirements, either driven by regulatory or market demands, FinConecta offers a turnkey solution, a one stop shop, with two options:

The Financial Institution can create its own marketplace for its customers, monetizing its APIs through it.

Develop standardized (APIs) to allow easy integration by TPPs


the infrastructure for the time of the contract

12

Description of services

FinConecta will provide banks with these services:

4wrd to bank’s core system

standard APIs APIs via developer portal

Maintainand develop developer portal*

Design

GenerateIntegrate Expose

*Hosted by bank or Finconecta


13

4WRD

Approved thirdparties

Users

Developer Portal

API’sConnect with developers and other parties via a comprehensive, customized portal that offers built-in app registration and support for automatic and manual API key approval. This enables third parties to connect with the bank’s core via a controlled bank branded interface for consumption of APIs.

Bank’s core

Open Banking LiveStructure


Home Intro Sandbox

BANK X FORDEVELOPERS

Log In

ACCOUNTS

Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam, quis nostrud exercitation ullamco laboris nisi ut aliquip ex ea commodo.

PAYMENTS


IDENTITY


LOCATION


BX

14

Customized Developer Portal (Independent)

developerhub.finconecta.com

X Bank Developer Portal

The bank will have its own company-branded comprehensive developer portal.


15

Open Banking LiveOperating Model

FinConecta offers a turnkey solution, a one stop shop, covering the following elements:

Open Banking LiveInfrastructure License

● Integration of Core FI System(s) to FinConecta’s 4WRD Platform and subsequent maintenance

● Mapping and testing of all required open APIs

● Setup and activation of API Authentication Module

● Setup and activation of API Management Tool

● Setup of API Sandbox for TPPs to test solutions

● Setup and activation of customized Developer Portal

● Setup and activation of API Dashboard for monitoring, control and metrics reporting

● 24/7 Claims Support

Open Banking LiveProfessional Services

● Enterprise-grade, flexible, modular and scalable API Management Platform “4WRD” including:

○ API Management Tool ○ API Authentication Module covering

both Final Client’s Consent as well as TPP Approval

○ API Sandbox○ API Developer Portal ○ API Dashboard for real-time activity

monitoring, control and metrics reporting

● Access to standard and universal APIs based on a previously developed catalog

● Flexible entitlements for different stakeholders including Auditors, Regulators, etc.


Implementation Timeline : 8 weeksProcess & Next Steps

MAPPING OF REQUIRED APIs CREATION OF APIs

INTEGRATION TO FI AND ACCESS TO

CONSOLE

PERSONALIZE DEVELOPER PORTAL

1 2 3 4

W3 W5 W6 W8

16

Approximate implementation time assuming required information and resources are provided as at when due.


17

Benefits ofOpen Banking Live

● Regulation Compliance kit

● Monetization of APIs

● Sandbox for testing

● Continuous Innovation

● Developer Portal

● Marketplace of solutions


Thank you!

Open Banking Live - Finconecta · 2020-02-12 · Open Banking APIs are now being created on all...

Documents

Transcript of Open Banking Live - Finconecta · 2020-02-12 · Open Banking APIs are now being created on all...