PSD2-driven Open Banking is here, and with it comes challenges in understanding what it means, choosing which standards organizations to follow, which practices are right for you, and whether to aim for regulatory compliance only or use the regulation as an opportunity to differentiate and transform. From a strategic and technical point of view, compliance dictates that now is the time to chart a precise implementation for your organization – do you know where to begin?

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PSD2 & Open Banking:
How to go from standards to
implementation and compliance
Olaf van Gorp

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Presenter
Olaf van Gorp
Technical Sales Europe - Akana
olaf.van.gorp@roguewave.com

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Agenda
• PSD2 and APIs
• Implementation standards
• Added value of API management
• Q & A

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Watch the on-demand webinar

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PSD2 and APIs

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Third
party
provider
account
information
Third
party
provider
account
information
payment
initiation
Third
party
provider
payment initiation
Third
party
provider
account
information
Third
party
provider
payment
initiation
Third
party
provider
account
information
Third
party
provider
confirmation of
funds Third
party
provider

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APIs!
(really..?)

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PSD2? APIs?

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Understand PSD2…
…technical compliance.

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Verify request integrity
Strong customer authentication
Mutual authentication
Dynamic linking
Consumer authorization

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PSD
2
APIs
!
PSD
2
APIs
!

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A sample PSD2 component architecture
IAM: Identity and access management
APIM: API management
PSD2
APIM
IAM
Fraud
detection
Banking
system

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What are APIs and API management?
APIs
Expose a business
capability to
designated
consumers in a
secure and controlled
manner.
API
management
Gives you control
over the API across
it’s entire lifecycle,
from design to
deployment to
operational health.
API management
solutions
Provide the
capabilities to
address and
automate your API
management
requirements.

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Sample API architecture

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In addition, take care of ‘implicit’ API requirements
Summary: Benefits of an APIM solution for
PSD2
Delegate PSD2 API requirements
Decouple published API from downstream landscape
Offer flexibility re. published API
• In particular: API security, authorization
• Rate limiting, consumer management, API lifecycle management, etc.
• Interoperability, different target consumers, etc.

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Watch the on-demand webinar

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Implementation standards

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PSD2 / OB standards
• Regulatory Technical Standards (RTS)
on strong customer authentication
and secure communication
• UK Open Banking (with PSD2 additions)
• Berlin Group
• STET
• Polish API (and others)

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Standards comparison
• UK Open Banking (≠ PSD2):
– Fully open standards-based
(OAuth2.0, OIDC, PKI, JWT, etc.)
– Swagger docs published
• Berlin Group:
– Standards like OAuth2.0 optional rather than preferred
– Deviation and divergence
• E.g. OAuth scopes, signing HTTP messages, ..

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Standards divergence
• Deviations force customization
• Interoperability consequences?
– …across ‘standards’?

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Multiple initiatives (that may not be compatible)
Summary: Standards
Indispensable for effective technical implementation, yet..
Not yet complete
‘Exotic’ elements may force customization
Interoperability concerns

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Added value of
API management

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Sample PSD2 portal

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Import PSD2 specified API

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PSD2 requirements: API security
• Certificate-based client authentication
• OAuth2.0 (as one way to deal with authorization)
Policies
- configurable
- reusable
- versioned

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API best practice: rate limiting
• Limit the number of requests
• Protect your downstream systems (request overload)

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API best practice: API lifecycle management
• API development lifecycle
– E.g. dev, test, QA, prod
• API consumption lifecycle
– Accepted, rejected, suspended, revoked
• API versioning
– Notification, parallel versions

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API best practice: API analytics
• Does my API provide the
expected business value?
• What consumption trends do
I see?
• Do my APIs function as
expected?

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Non-mandatory APIs
• Open banking as a business opportunity…
• …offering a much wider range of services…
• …that will make your bank stand out.

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Allow for effective consumer on-boarding and management
Summary
Help you with the technical implementation of your
PSD2 API-based interface
Provide you with a flexible/adaptable solution
Ensure effective management of your APIs
Offer great possibilities to offer additional functionality (opening up further
business opportunities)
An APIM solution is indispensable for an effective implementation of the
PSD2 interface. It will:

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Q & A

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Next steps:
Learn more in our blog series on PSD2 &
Open Banking at:
blog.akana.com
Watch the full webinar
on-demand.

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