This article will explain what are the key requirements that you need to consider when implementing a successful open banking architecture and how WSO2 as an open banking solution provider help banks to implement the open banking platform. For starters, there’s the core banking system, which drives daily activities like deposits, withdrawals, and loans. Third-party providers (TPPs) need to be able to rely on highly available and well-performing dedicated interfaces provided by Account Servicing Payment Service Provider (ASPSPs), so that they can, in turn, provide reliable services to their customers. This proposed system overcomes the lacking of the existing manual system. As such, the ability to identify and communicate to third parties the potential impact that the proposed changes may have is also key to a successful open banking ecosystem. %PDF-1.5 %���� Everyone from your compliance officer to your open banking project manager to your CTO needs to have complete confidence in the open banking platform you choose. Reporting capabilities are needed to generate reports for bank management, third parties and for relevant stakeholders to see how the open banking platform is performing and to take necessary business decisions. As banks face ever-increasing disruption and fierce competition, they are confronted with the age-old debate – buy versus build – as they assess their traditional front- and back-end platform architecture. We shall call this the mobile banking server for ease of understanding. The application will ensure what services are to be provided to the customer. This website uses cookies so that we can provide you with the best user experience. These two layers are SOA (Service Oriented Architecture) based and Java compliant. This system is very powerful for us, it is the best way that we know to show you, the customers, what your balance sheet is. A traditional core banking system – even if it’s for a tier 3 or tier 4 financial institution – needs a virtual armory of support applications, which typically function in disparate, fragmented siloes. Decoupled approach is where the bank user will not be redirected to the bank’s authentication portal, but the third party application identifies the user and does a back channel call to the bank saying the third-party application needs to get consent from this particular user. So the open banking platform should have the capability to connect with any type of internal or external banking system. When selecting the authentication approach or mechanisms, you should think about how it would affect user experience for the bank’s customers and whether it will conform with the trust that the customers already have with the bank. Redirect approach is where the bank user is redirected to the bank’s authentication portal from the third-party application. v\�>s��6mL�Nb&�Uc����vQw��#�w����dqHf��HԦw1��f�Y�%J�����g�<>��!��kE�������i�Y�L���[ l��S�vy���Ê�O�F�e3k��P��Q��]h!��~ҩn��&C |]li[Tk�6r����؆��� &�\�?S��f��j+! *2��0|�iq:;�sj�ã���Ĕ}� This creates a process chain that offers the service provider little visibility, and the customer little flexibility. Our article on Strong Customer Authentication provides more details. System analysis is used to analyze and design any system. ���f��"K��B����/V�#�;�J+�������~/�_Ǩ��H�1�́. Banking architecture does not vary too much regardless of the system being used, or the country it is used in. API analytics can help see how the exposed APIs are performing and how they can improve. endstream endobj startxref Revoking consent should be as easy as providing consent and the authority to revoke the consent should be available to the bank’s users. 0 When sharing customer data with third parties, banks need to get customer consent. If the solution doesn’t meet the expected customer experience, no one will use the products and services that are provided through the open banking platform. The ABC Banking Group focuses on delivering financial services to their clients. The bank provides an interface for bank users to log in and revoke the consents. Some countries have already taken the initiative to move towards open banking. This article builds a theory of financial system architecture. But in such a system very limited banking services are provided. The bank also offers several web facilities aiding customers in account management. CSSE 377 – Software Architecture & Design II Software Architecture in Banking A Comparative Paper on the Effectiveness of Different Software Architectures Within an Financial Banking System JD Hill Andrew Robby Kruth Joe Salisbury Sam Varga 11/9/2010 Introduction Software architecture design is an important aspect of our daily lives whether we know it or not. However it isn’t just about exposing APIs and implementing a consent management layer, there are a lot of other requirements when implementing an open banking platform such as API management, API security, and other functional and operational requirements. There can be different types of testing involved including integration, system, security, user acceptance, and stress testing. 206 0 obj <>/Encrypt 179 0 R/Filter/FlateDecode/ID[<42B6974E5A996E49B30F4F79E5AC6D60>]/Index[178 45]/Info 177 0 R/Length 131/Prev 845647/Root 180 0 R/Size 223/Type/XRef/W[1 3 1]>>stream Mainly OAuth2 token or certificate based third party authentication and authorization mechanisms are widely used in different open banking systems. Banking business architecture is the foundation for transformation and is a strategic imperative for banks to survive and thrive. But if a bank wants to expose account information of bank customers or needs to provide a service to make payments, those APIs need to expose as secured APIs. When a customer makes a payment, the customer needs to go through all the authentication steps and provide their consent every time, even if that transaction does not have a risk. In doing that, some banks provide a signup form where third parties can come and fill the form to get access. 178 0 obj <> endobj ���yh�W�8P�� �"���f���2oO���=�j�W���uw��p��[Ʌ�n�\���KwP�>��$ġ����>��zq�Ǟ�l���kc��]��6�I�"����>���������O�#��凅'���%B(�-��1�cӡ(��sI��a��˶�i��r/(&�~�J�M����T`��W���E|���V\�»�����ٔ�w>J7����C�x1�y���i>�^[DoH����G+�͞K*��>��:$@����M���W��� c4�`�V���a:Y����A+�-&��w���Q�V�+m�+0qk52?�J�̑pU['�����aZ�d�{ ��(����`,*����1v/��*�y��g�R��nU1 h�G�b���ia^I�%k��M�t"������@��UWL��KŲu�s��D�~R�!R�쿑Z�B! Those banking systems may work with different message formats (JSON, XML) and different massage transports (HTTPS/S, VFS, JMS, TCP). For example, ATM locations, branch locations, exchange rates, and interest rates can be exposed by means of open APIs. So then the third parties can consume those APIs and generate new services to the bank’s customers. The increasing complexity of IT applications has influenced every industry, and banking is no exception. That is what we call Transaction Risk Analysis (TRA). Our objective is to securely expose internal data and services to external third parties with customer consent via RESTful APIs. The OLYMPIC Banking System's SOA technology allows the system readily to inter-operate with existing software and external networks. Banks always carry the risk of choosing the wring system design or … Matt pulled us out of the tech stack for a second to focus on what's *beneath* it, the foundational layer of the application pyramid: business drivers.

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