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An Entry Point to Impactful
Open Banking Architecture
May 28, 2020
Hello!
Dassana Wijesekara
Director, Solution Architecture
dassana@wso2.com
WSO2 Inc. Copyright © 2020 All rights reserved. This document or any portion thereof may not be reproduced or used in any manner whatsoever without the express written permission of WSO2.
Agenda
● Global Open Banking Patterns
● Reference Architecture - PSD2, CDR, Mexico, Brazil
● Journey of an Open Banking Project
● Lessons Learnt
● Beyond Open Banking
3
Global Trends
WSO2 Inc. Copyright © 2020 All rights reserved. This document or any portion thereof may not be reproduced or used in any manner whatsoever without the express written permission of WSO2.
Open Banking Across the World
5
9
Canadian National Debt
Payment Framework
8
Mexico Fintech Law
Open Banking for Brazil
Banco Central do Brasil
10
Open Banking
UK
(OBUK)
1
Smart Nation Singapore
Finance-as-a-Service Initiative
Open Banking
Foundation
Nigeria
7
Consumer Data Right (CDR)
that covers multiple
industry verticals (banking,
telco, energy)
5
NZ payments and
Accounts API Standard -
PaymentsNZ
6
3
Open API Program for Banking
Hong Kong Monetary Authority
(HKMA)
4
European Union
(PSD2)
2
WSO2 Inc. Copyright © 2020 All rights reserved. This document or any portion thereof may not be reproduced or used in any manner whatsoever without the express written permission of WSO2.
Conceptual Evolution of Open Banking
6
Payments Payments + Retail Banking
2003 2007 2015 2019 2020
Open API Framework + Phased Approach
Consumer Data and Payments
PSD1
(EU)
PSD2
(EU)
GDPR“Open
Innovation”
Concept
OB UK
CDR
Australia
Monetary Authority
of Singapore (MAS)
Hong Kong Monetary
Authority (HKMA)
Brazil
Fintech Law
20182016
Finance-as-a-Service + API registry
Consumer Data - Across Many Industry Verticals
WSO2 Inc. Copyright © 2020 All rights reserved. This document or any portion thereof may not be reproduced or used in any manner whatsoever without the express written permission of WSO2.
What are the Drivers?
● Reduce friction
● Fair competition
● Collaboration
● Improved consumer experience
7
Reference Architecture
WSO2 Inc. Copyright © 2020 All rights reserved. This document or any portion thereof may not be reproduced or used in any manner whatsoever without the express written permission of WSO2.
Maturity—Digital Transformation
● Maturity of business
● Maturity of technical leadership and engineering organization
● Maturity of systems
● Quality of data and clarity of processes
● Depth of understanding—compliance
9
WSO2 Inc. Copyright © 2020 All rights reserved. This document or any portion thereof may not be reproduced or used in any manner whatsoever without the express written permission of WSO2.
Maturity—An Example
10
Embrace
Open
standards
Data
Science-
Focused
Startup
Culture
API CoEEcosystem
Agile,
Independent
Teams
Maturity
Product
Manager
Innovation
Manager
Architect
Compliance
Manager
Data Architect
Full Stack
Engineers
Business
Analyst
Strong focus on
1. Agility
2. Being consumer-centric
3. Innovative business models
● POS financing
● SME real-time lending
WSO2 Inc. Copyright © 2020 All rights reserved. This document or any portion thereof may not be reproduced or used in any manner whatsoever without the express written permission of WSO2.
High-Level Platform Architecture
11
Digital Banking
Core Banking
Payments
Risk & Fraud
Audit & Disputes
API Gateway
(Dedicated or
Transient)
Developer Portal
API Analytics
Monetization
Identity & Access
Management
“Strong Customer
Authentication”
Client Registry
Metadata
Management
Consent
Regulator
Sandbox
Integration
&
Messaging
security / Reporting
TPP or ADR
Developer
Engagement
WSO2 Inc. Copyright © 2020 All rights reserved. This document or any portion thereof may not be reproduced or used in any manner whatsoever without the express written permission of WSO2.
Consumer Data Integration
12
Integration
&
Messaging
StandardInterface
Consumer
Account
Product
Payments
Transactions
Compliant
Broker
Local/Cloud
Adaptor
Connector
Internal
Gateway
Monolith
File Types
System
Roadmap
SQL
Datamodel
Microservices
Protocol
Service
Mesh
Multi-Version
Distributed
Lifecycle
NoSQL
Non-Standard
e.g: Apache Kafka, IBM MQ
e.g: MS Excel, CSV, txt
e.g: IBM AS/400, IBM Z360, UltraData, Finacle
e.g: Oracle DB, Snowflake, Cassandra
API
Event
File
System
Persistence
Store
WSO2 Inc. Copyright © 2020 All rights reserved. This document or any portion thereof may not be reproduced or used in any manner whatsoever without the express written permission of WSO2.
Consumer Data Integration—Challenges
13
● Performance
● Availability
● Data model unique to the bank / system
● Access
● Non-standard interface
● Ownership
Circuit Breaker
Data Lake
Inflight
Transformation
WSO2 Inc. Copyright © 2020 All rights reserved. This document or any portion thereof may not be reproduced or used in any manner whatsoever without the express written permission of WSO2.
KYC—Identity & Consent
14
Identity Store
Integration
Identity
Federation
Identity
Bridging
Entitlement
IdentityInterface
Consent
Management
External Identity
Store
Persistence Store
Cloud
System
IdP
Client Register
LDAP / AD
DB
Digital Banking
ISAM
Core Banking
Non-Standard
API
{SAML SSO, OIDC, SCIM}
Consent
Register
WSO2 Inc. Copyright © 2020 All rights reserved. This document or any portion thereof may not be reproduced or used in any manner whatsoever without the express written permission of WSO2.
API Gateway
15
Elastic Scaling
Control Plane
Developer Content
Synthetic DataMicro API
Gateway
Infosec
API
Monetize
Structural
Conformance
Support
Open Standards
Partner
(Commitment)
Open API
API Sandbox
API
Marketplace
Services
Micro API
Gateway
Micro API
Gateway
Spec. Version
Handling
Query &
Pagination
Other APIs
Voluntary Data
gRPC / GraphQL
API Analytics
Data Plane
WSO2 Inc. Copyright © 2020 All rights reserved. This document or any portion thereof may not be reproduced or used in any manner whatsoever without the express written permission of WSO2.
A Reference Architecture
16
: OTP, Multifactor Auth
: Identity Federation
: Consent
(ODC 1.0 Hybrid flow, FAPI-RW,
public_key_jwt)
: Throttling
: Structural Conformance
: API Security
: Caching
: API Usage Events
DCR API
Banking
API
Common
API
AdminAPI
Data
LakeADR
API
Sandbox
API
Marketplace
API
Analytics
Dashboard
Infosec
API
Identity Meta
Store
Certificate Store
Metadata
Cache
ADR Registry
SSA Validation
API Token
Lifecycle
Management
JWKS Cache
Consent
Admin
Consent
Selfcare
ConsentAPI
: Mediation
: Protocol Switching
: Payload Transformation
(All EIP Supported)
Fraud
Dispute
Resolution
Data
Services
Notification
Proxy
ADR Registration
Token / Revoke
CDS Datasets
Common Datasets
Regulator
Get Metrics
Metadata Update
getStatus
JWKS
Endpoint
Metadata Cache Update
Digital Banking System
SMS Endpoint
SMTP Endpoint
The Journey (Not a Destination)
WSO2 Inc. Copyright © 2020 All rights reserved. This document or any portion thereof may not be reproduced or used in any manner whatsoever without the express written permission of WSO2.
Navigation Path and Waypoints
18
1
2
3
4
5 6 7 n
Contract
Negotiation
Design
Workshop
Implementation
Test Go Live!
Beyond
Compliance
Bank 4.0
b
Regulator
Alignment
Internal
Culture Shift
a
Partner
Alignment
c
Partner
Update
Agile
2
3
4
Reciprocal Collaboration
c
Compliance Date
WSO2 Inc. Copyright © 2020 All rights reserved. This document or any portion thereof may not be reproduced or used in any manner whatsoever without the express written permission of WSO2.
The Design Workshop
19
WSO2 Inc. Copyright © 2020 All rights reserved. This document or any portion thereof may not be reproduced or used in any manner whatsoever without the express written permission of WSO2.
Cultural Shift
20
● The startup mindset
● Innovation
● Small, agile, full stack/DevOps team
● Free thinkers & open spaces
● Chaos theory
WSO2 Inc. Copyright © 2020 All rights reserved. This document or any portion thereof may not be reproduced or used in any manner whatsoever without the express written permission of WSO2.
Reciprocal Collaboration
21
● Build community
● Share ideas
● Share resources
● Build IP
Lessons Learnt(Acquired Knowledge)
22
WSO2 Inc. Copyright © 2020 All rights reserved. This document or any portion thereof may not be reproduced or used in any manner whatsoever without the express written permission of WSO2.
Key Learnings
23
● Banks struggle with their incumbent systems
● Re-use what you have
● Buy expertise, not the tool
● Culture needs to change
● Banks adopt a compliance-only mindset—Need support in their digital strategy
● This is digital transformation in disguise
Beyond Open Banking
WSO2 Inc. Copyright © 2020 All rights reserved. This document or any portion thereof may not be reproduced or used in any manner whatsoever without the express written permission of WSO2.
The API Space—Value Addition
25
Fintech Developers
Partners
Additional
APIs
Support for
Eventing
Monetization
Resources
+
+
Attributes
API
Compliance
Boundary
Rich, Performant, Stable API Space
WSO2 Inc. Copyright © 2020 All rights reserved. This document or any portion thereof may not be reproduced or used in any manner whatsoever without the express written permission of WSO2.
The Data Space—Value Addition
26
Merchant CodeBiller CodeDescriptionType
Transaction
Record ID Time
Voluntary Data Set
Smart LendingReal-Time Credit Scoring Wealth Management
Direct Debit
Transfer
Payment
Value Date
Posting Date
Execution Date
1
2
3
4
Consumer Behaviour Pattern
Investment Pattern
Choices
Relationships
Remove PID Deidentify
WSO2 Inc. Copyright © 2020 All rights reserved. This document or any portion thereof may not be reproduced or used in any manner whatsoever without the express written permission of WSO2.
The Consumer Engagement Space—Value Addition
27
● User journey optimization
⦿ Authentic consumer experience
● Cognitive analytics
⦿ Fraud detection
⦿ Risk underwriting
● Artificial intelligence & machine learning
⦿ Robo advice
● Blockchain—Smart contracts
WSO2 Inc. Copyright © 2020 All rights reserved. This document or any portion thereof may not be reproduced or used in any manner whatsoever without the express written permission of WSO2.
Cross Domain Aggregation
28
Switching Energy Provider
Red Energy
Payment
Transactions
20202019
Origin Energy
Bank
(The Trusted
Advisor)
WSO2 Inc. Copyright © 2020 All rights reserved. This document or any portion thereof may not be reproduced or used in any manner whatsoever without the express written permission of WSO2.
The Bank 4.0* and Beyond
29
● Incubators and tight collaboration with startups
● Embedded banking
● SME uplift
● The “Banking Experience Canvas”
* A term coined by Brett King in his book titled “Bank 4.0: Banking Everywhere, Never at a Bank”.
Question Time!
30
wso2.com
Thanks!

More Related Content

An Entry Point to Impactful Open Banking Architecture

  • 1. An Entry Point to Impactful Open Banking Architecture May 28, 2020
  • 2. Hello! Dassana Wijesekara Director, Solution Architecture dassana@wso2.com
  • 3. WSO2 Inc. Copyright © 2020 All rights reserved. This document or any portion thereof may not be reproduced or used in any manner whatsoever without the express written permission of WSO2. Agenda ● Global Open Banking Patterns ● Reference Architecture - PSD2, CDR, Mexico, Brazil ● Journey of an Open Banking Project ● Lessons Learnt ● Beyond Open Banking 3
  • 5. WSO2 Inc. Copyright © 2020 All rights reserved. This document or any portion thereof may not be reproduced or used in any manner whatsoever without the express written permission of WSO2. Open Banking Across the World 5 9 Canadian National Debt Payment Framework 8 Mexico Fintech Law Open Banking for Brazil Banco Central do Brasil 10 Open Banking UK (OBUK) 1 Smart Nation Singapore Finance-as-a-Service Initiative Open Banking Foundation Nigeria 7 Consumer Data Right (CDR) that covers multiple industry verticals (banking, telco, energy) 5 NZ payments and Accounts API Standard - PaymentsNZ 6 3 Open API Program for Banking Hong Kong Monetary Authority (HKMA) 4 European Union (PSD2) 2
  • 6. WSO2 Inc. Copyright © 2020 All rights reserved. This document or any portion thereof may not be reproduced or used in any manner whatsoever without the express written permission of WSO2. Conceptual Evolution of Open Banking 6 Payments Payments + Retail Banking 2003 2007 2015 2019 2020 Open API Framework + Phased Approach Consumer Data and Payments PSD1 (EU) PSD2 (EU) GDPR“Open Innovation” Concept OB UK CDR Australia Monetary Authority of Singapore (MAS) Hong Kong Monetary Authority (HKMA) Brazil Fintech Law 20182016 Finance-as-a-Service + API registry Consumer Data - Across Many Industry Verticals
  • 7. WSO2 Inc. Copyright © 2020 All rights reserved. This document or any portion thereof may not be reproduced or used in any manner whatsoever without the express written permission of WSO2. What are the Drivers? ● Reduce friction ● Fair competition ● Collaboration ● Improved consumer experience 7
  • 9. WSO2 Inc. Copyright © 2020 All rights reserved. This document or any portion thereof may not be reproduced or used in any manner whatsoever without the express written permission of WSO2. Maturity—Digital Transformation ● Maturity of business ● Maturity of technical leadership and engineering organization ● Maturity of systems ● Quality of data and clarity of processes ● Depth of understanding—compliance 9
  • 10. WSO2 Inc. Copyright © 2020 All rights reserved. This document or any portion thereof may not be reproduced or used in any manner whatsoever without the express written permission of WSO2. Maturity—An Example 10 Embrace Open standards Data Science- Focused Startup Culture API CoEEcosystem Agile, Independent Teams Maturity Product Manager Innovation Manager Architect Compliance Manager Data Architect Full Stack Engineers Business Analyst Strong focus on 1. Agility 2. Being consumer-centric 3. Innovative business models ● POS financing ● SME real-time lending
  • 11. WSO2 Inc. Copyright © 2020 All rights reserved. This document or any portion thereof may not be reproduced or used in any manner whatsoever without the express written permission of WSO2. High-Level Platform Architecture 11 Digital Banking Core Banking Payments Risk & Fraud Audit & Disputes API Gateway (Dedicated or Transient) Developer Portal API Analytics Monetization Identity & Access Management “Strong Customer Authentication” Client Registry Metadata Management Consent Regulator Sandbox Integration & Messaging security / Reporting TPP or ADR Developer Engagement
  • 12. WSO2 Inc. Copyright © 2020 All rights reserved. This document or any portion thereof may not be reproduced or used in any manner whatsoever without the express written permission of WSO2. Consumer Data Integration 12 Integration & Messaging StandardInterface Consumer Account Product Payments Transactions Compliant Broker Local/Cloud Adaptor Connector Internal Gateway Monolith File Types System Roadmap SQL Datamodel Microservices Protocol Service Mesh Multi-Version Distributed Lifecycle NoSQL Non-Standard e.g: Apache Kafka, IBM MQ e.g: MS Excel, CSV, txt e.g: IBM AS/400, IBM Z360, UltraData, Finacle e.g: Oracle DB, Snowflake, Cassandra API Event File System Persistence Store
  • 13. WSO2 Inc. Copyright © 2020 All rights reserved. This document or any portion thereof may not be reproduced or used in any manner whatsoever without the express written permission of WSO2. Consumer Data Integration—Challenges 13 ● Performance ● Availability ● Data model unique to the bank / system ● Access ● Non-standard interface ● Ownership Circuit Breaker Data Lake Inflight Transformation
  • 14. WSO2 Inc. Copyright © 2020 All rights reserved. This document or any portion thereof may not be reproduced or used in any manner whatsoever without the express written permission of WSO2. KYC—Identity & Consent 14 Identity Store Integration Identity Federation Identity Bridging Entitlement IdentityInterface Consent Management External Identity Store Persistence Store Cloud System IdP Client Register LDAP / AD DB Digital Banking ISAM Core Banking Non-Standard API {SAML SSO, OIDC, SCIM} Consent Register
  • 15. WSO2 Inc. Copyright © 2020 All rights reserved. This document or any portion thereof may not be reproduced or used in any manner whatsoever without the express written permission of WSO2. API Gateway 15 Elastic Scaling Control Plane Developer Content Synthetic DataMicro API Gateway Infosec API Monetize Structural Conformance Support Open Standards Partner (Commitment) Open API API Sandbox API Marketplace Services Micro API Gateway Micro API Gateway Spec. Version Handling Query & Pagination Other APIs Voluntary Data gRPC / GraphQL API Analytics Data Plane
  • 16. WSO2 Inc. Copyright © 2020 All rights reserved. This document or any portion thereof may not be reproduced or used in any manner whatsoever without the express written permission of WSO2. A Reference Architecture 16 : OTP, Multifactor Auth : Identity Federation : Consent (ODC 1.0 Hybrid flow, FAPI-RW, public_key_jwt) : Throttling : Structural Conformance : API Security : Caching : API Usage Events DCR API Banking API Common API AdminAPI Data LakeADR API Sandbox API Marketplace API Analytics Dashboard Infosec API Identity Meta Store Certificate Store Metadata Cache ADR Registry SSA Validation API Token Lifecycle Management JWKS Cache Consent Admin Consent Selfcare ConsentAPI : Mediation : Protocol Switching : Payload Transformation (All EIP Supported) Fraud Dispute Resolution Data Services Notification Proxy ADR Registration Token / Revoke CDS Datasets Common Datasets Regulator Get Metrics Metadata Update getStatus JWKS Endpoint Metadata Cache Update Digital Banking System SMS Endpoint SMTP Endpoint
  • 17. The Journey (Not a Destination)
  • 18. WSO2 Inc. Copyright © 2020 All rights reserved. This document or any portion thereof may not be reproduced or used in any manner whatsoever without the express written permission of WSO2. Navigation Path and Waypoints 18 1 2 3 4 5 6 7 n Contract Negotiation Design Workshop Implementation Test Go Live! Beyond Compliance Bank 4.0 b Regulator Alignment Internal Culture Shift a Partner Alignment c Partner Update Agile 2 3 4 Reciprocal Collaboration c Compliance Date
  • 19. WSO2 Inc. Copyright © 2020 All rights reserved. This document or any portion thereof may not be reproduced or used in any manner whatsoever without the express written permission of WSO2. The Design Workshop 19
  • 20. WSO2 Inc. Copyright © 2020 All rights reserved. This document or any portion thereof may not be reproduced or used in any manner whatsoever without the express written permission of WSO2. Cultural Shift 20 ● The startup mindset ● Innovation ● Small, agile, full stack/DevOps team ● Free thinkers & open spaces ● Chaos theory
  • 21. WSO2 Inc. Copyright © 2020 All rights reserved. This document or any portion thereof may not be reproduced or used in any manner whatsoever without the express written permission of WSO2. Reciprocal Collaboration 21 ● Build community ● Share ideas ● Share resources ● Build IP
  • 23. WSO2 Inc. Copyright © 2020 All rights reserved. This document or any portion thereof may not be reproduced or used in any manner whatsoever without the express written permission of WSO2. Key Learnings 23 ● Banks struggle with their incumbent systems ● Re-use what you have ● Buy expertise, not the tool ● Culture needs to change ● Banks adopt a compliance-only mindset—Need support in their digital strategy ● This is digital transformation in disguise
  • 25. WSO2 Inc. Copyright © 2020 All rights reserved. This document or any portion thereof may not be reproduced or used in any manner whatsoever without the express written permission of WSO2. The API Space—Value Addition 25 Fintech Developers Partners Additional APIs Support for Eventing Monetization Resources + + Attributes API Compliance Boundary Rich, Performant, Stable API Space
  • 26. WSO2 Inc. Copyright © 2020 All rights reserved. This document or any portion thereof may not be reproduced or used in any manner whatsoever without the express written permission of WSO2. The Data Space—Value Addition 26 Merchant CodeBiller CodeDescriptionType Transaction Record ID Time Voluntary Data Set Smart LendingReal-Time Credit Scoring Wealth Management Direct Debit Transfer Payment Value Date Posting Date Execution Date 1 2 3 4 Consumer Behaviour Pattern Investment Pattern Choices Relationships Remove PID Deidentify
  • 27. WSO2 Inc. Copyright © 2020 All rights reserved. This document or any portion thereof may not be reproduced or used in any manner whatsoever without the express written permission of WSO2. The Consumer Engagement Space—Value Addition 27 ● User journey optimization ⦿ Authentic consumer experience ● Cognitive analytics ⦿ Fraud detection ⦿ Risk underwriting ● Artificial intelligence & machine learning ⦿ Robo advice ● Blockchain—Smart contracts
  • 28. WSO2 Inc. Copyright © 2020 All rights reserved. This document or any portion thereof may not be reproduced or used in any manner whatsoever without the express written permission of WSO2. Cross Domain Aggregation 28 Switching Energy Provider Red Energy Payment Transactions 20202019 Origin Energy Bank (The Trusted Advisor)
  • 29. WSO2 Inc. Copyright © 2020 All rights reserved. This document or any portion thereof may not be reproduced or used in any manner whatsoever without the express written permission of WSO2. The Bank 4.0* and Beyond 29 ● Incubators and tight collaboration with startups ● Embedded banking ● SME uplift ● The “Banking Experience Canvas” * A term coined by Brett King in his book titled “Bank 4.0: Banking Everywhere, Never at a Bank”.