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[WSO2 Integration Summit Brazil 2019] Open Banking

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This deck highlights the WSO2 Open Banking offering and how Banks and Fintechs can benefit from the solution. The capabilities in the solution and a few case studies on how banks have used our solution and used the components beyond their compliance requirements for digital transformation.

Watch the recording of the sessions from WSO2 Integration Summit Brazil here - https://wso2.com/integration-summit/brazil-2019/

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[WSO2 Integration Summit Brazil 2019] Open Banking

  1. 1. Open Banking Bringing You Closer to Digital Transformation u Vidura Gamini Abhaya, Senior Director — Solutions Architecture WSO2 INTEGRATION
  2. 2. Our Expertise in Financial Services Expenses Profit
  3. 3. Current Challenges in the Banking Industry
  4. 4. BANK ACCOUNT received wages to an account saved at a financial institution of borrowings are from a Bank adults have a bank account 14% 9% 70% 4% Credits: Global Financial Index -2017 Making a Case for Financial Inclusion
  5. 5. Credits:https://tech.co/millennials-killing-broke-business-sucks-2017-09
  6. 6. Characteristics Maturists (pre-1945) Baby Boomers (1945-1960) Generation X (1961-1980) Generation Y (1981-1995) Generation Z (1995-2012) Attitude toward technology Largely disengaged Early information technology (IT) adapters Digital Immigrants Digital natives “Technoholics” - entirely dependent On IT: limited grasp of alternatives Signature product Automobile Television Personal Computer Tablet/smartphones Google glass, graphene, nano-computing, 3D printing, driverless cars Communication media Formal letter Telephone Email and text message Text or social media Hand-held(or integrated into clothing) communication devices Communication preference Face-to-face Face-to-face ideally, but telephone or email if required Text messaging or email Online and Mobile (text messaging) Facetime Preference when making financial decisions Face-to-face meeting Face-to-face ideally, but increasingly will go online Online—would prefer face-to-face if time permitting Online Solutions will be digitally crowd-sourced Credits: https://wealth.barclays.com/global-stock-and-rewards/en_gb/home/research-centre/talking-about-my-generation.html
  7. 7. Gen ! 9%Gen Z 34%Gen Y 29% Gen X 13% Baby Boomers 13% 0 200 400 600 800 Population(millions) 0-4 5-9 10-14 15-19 20-24 25-29 30-34 35-39 40-44 45-49 50-54 55-59 60-64 65-69 70-74 75-79 80-84 85-89 90-94 95-99 100-104 Age Group Banking Consumer Distribution Today Maturists 3%
  8. 8. Gen ! 9%Gen Z 34%Gen Y 29% Gen X 13% Baby Boomers 13% 0 200 400 600 800 Population(millions) 0-4 5-9 10-14 15-19 20-24 25-29 30-34 35-39 40-44 45-49 50-54 55-59 60-64 65-69 70-74 75-79 80-84 85-89 90-94 95-99 100-104 Age Group Banking Consumer DistribuLon Today Maturists 3% 84%16%
  9. 9. Gen ! 9%Gen Z 34%Gen Y 29% Gen X 13% Baby Boomers 13% 0 200 400 600 800 Population(millions) 0-4 5-9 10-14 15-19 20-24 25-29 30-34 35-39 40-44 45-49 50-54 55-59 60-64 65-69 70-74 75-79 80-84 85-89 90-94 95-99 100-104 Age Group Banking Consumer Distribution in 10 Years Maturists 3% 95%5%
  10. 10. Digital Banking Requirements
  11. 11. The Evolution of Banking Channels
  12. 12. Too Many Channels
  13. 13. Open Banking to the Rescue
  14. 14. Consumers Demand Their Own Experience
  15. 15. Open Banking: Placing the Customer in Control Banks expose their customer payment and account data, with customer consent, to Third-party Providers (TPPs) via APIs.
  16. 16. Thriving with Open Banking
  17. 17. Expanding Distribution Channels
  18. 18. Expanding Distribution Channels
  19. 19. Expanding Distribution Channels
  20. 20. Expanding Distribution Channels
  21. 21. KYC Like Never Before
  22. 22. KYC Like Never Before
  23. 23. KYC Like Never Before
  24. 24. KYC Like Never Before
  25. 25. WSO2 Open Banking
  26. 26. Key Features Required for Open Banking
  27. 27. Other Banks Example Open Banking Architecture Internal Bank Network Core Banking System Card Management System Uflity Payment Service More …. Open Banking Platform Customer Third Party Apps Merchants
  28. 28. WSO2 Open Banking - Componentized Architecture
  29. 29. WSO2 Open Banking - Componentized Architecture
  30. 30. ImplemenLng Open Banking Optional - TRA, Fraud Detection Configure Analytics Configure Consent Management Configure Strong Customer Authentication Setup TPP Onboarding Workflow Deploy APIs
  31. 31. The WSO2 Advantage for Open Banking Regulatory and domain experLse with global banks To help you understand the best technology fit for open banking Shorter technology implementaLon cycles that support aggressive project deadlines ComponenLzed soluLon architecture that is customizable to any use case Extensible to support banks ongoing and upcoming digital banking inifafves
  32. 32. Open Banking for Digital Banking
  33. 33. Spaghetti Architecture
  34. 34. Multiple Identities
  35. 35. Siloed Analytics
  36. 36. Technology Components of Open Banking
  37. 37. Opening the Door to Digital Transformation
  38. 38. Case Studies
  39. 39. The EvoluLon of PSD/2 within Europe STET V1.3 JUN NOV JAN FEB MAR APR AUG SEP NOV JAN MAR SEP OBUK V1.0 OBUK V2.0 OBUK V3.0 STET V1.2 STET V1.4 Berlin 1.0 Berlin 1.2 Berlin 1.3 OBUK V3.1 Original PSD2 Deadline External TesLng Deadline Final Deadline 2017 2018 2019
  40. 40. ● WSO2 is a Strategic Partner ● Multiple Subsidiaries from different countries ● Each with unique requirements and architecture ● Certain requirements such as security governed globally ● Different spec’s implemented ● Various authentication providers used ● Some reused their existing components ● Smaller entities selected the minimum deployment option ● Larger entities went for deployments that suited their future needs (i.e., API management beyond OB) Societe Generale 2nd largest bank in France
  41. 41. ● Integrated to work with Gemalto for SCA (2nd Factor) and Fraud Detection ● Reuse existing Integration layer based on WSO2 EI ● Semi-distributed setup with API gateways scaled out ● Custom integration flows to support domestic payment processing and secure foreign payments Societe Generale - Subsidiary in Bulgaria
  42. 42. ● Federated Authentication to existing IdP for SCA (1st factor) ● SMS-OTP 2nd factor with WSO2 IAM coordinating SCA flow ● Does API Management beyond Open Banking ● Two-layer architecture, where the outer layer handles OB APIs; the inner layer handles internal APIs. ● The outer layer communicates with the inner layer Societe Generale - Subsidiary in Germany
  43. 43. First Open Banking Implementation ● Started off with the minimum deployment ● OneSpan Authentication server integration for SCA - 2nd factor ● Uses WSO2 products to integrate internal systems and to supplement core banking facilities
  44. 44. Ongoing Implementation Information Store AISP OLB EVRY CoFEquation Beneficiary Infor & Statement Lookup Account Balances Fetch Account Balances Account Balances DB AISP OLB EVRY CoF PISP DB DB SSIS Equation CGI-BIN OB OB NIS Trickle Feed Processing start/stop Beneficiary and Statements Data Retrieve Account Balance Account Trickle Feed Eod Process IBM MQ Account Balances DLT ETL
  45. 45. Key Learnings
  46. 46. Key Learnings Open Banking DIY vs Complete Solution Building vs Buying Buy & get there faster Do not buy just the Technology (Pay for the expertise) BYO Reuse existing capabilities you have Maximise your existing investments Components Think Beyond Deadlines Compliance beyond deadlines Capabilifes not limited to compliance Wider use of your investment Future of Banking Expands the Banks reach KYC better (tailored offers, risk aversion)
  47. 47. Check out WSO2 Open Banking https://wso2.com/solutions/financial/open-banking/ http://gg.gg/fr648
  48. 48. THANK YOU wso2.com

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