178 0 obj <> endobj When thinking about existing data and services there can be some set of data that can be exposed via open APIs. ����Oy��E����$p_��wq�g��� Currently, it supports the openbanking.org.uk, Berlin Group NextGenPSD2, and STET specifications. In certain cases, banks want the approval to be done through a manual process where someone would look at the information and approve it manually. WSO2 Open Banking is developed on the WSO2 Integration Agile Platform, which consists of API management, identity and access management, enterprise integration, and analytics products. 222 0 obj <>stream In that case, all the information is checked and the approval happens automatically via a fully automated workflow. Your open banking architecture plays a large role in determining how effectively you open up your APIs, provide a seamless third-party experience and ultimately offer a better customer journey than that of your competitors. Most banks use mainframe systems. Banking system cloud transformation on Azure. Core Banking + Credit Card Architecture. ; Further, any change such as changing the infrastructure, software, or configuration, updating the whole open banking platform, fixing a bug, and publishing a new API version, may impact a third party's ability to deliver its services to their customers. So the open banking platform should have the capability to integrate different user store types and manage different user access rights. So then the third parties can consume those APIs and generate new services to the bank’s customers. It is really useful to analyze the data that is passing through the open banking architecture. Common Business Banking job titles: Business Banker, Business Documentation Analyst, Commercial Banking Representative Common Commercial Lending job titles: Commercial Loan Officer, Commercial Banker, Commercial Banking Associate, Commercial Lending Analyst Common Investment Banking job titles: Business Banker, Business Documentation Analyst, Commercial Banking Representative Common Investment Management job titles: Wealth Advisor, Financial Advisor, Trust Officer, Wealth Manageme… Therefore it will be really useful if we consider these standards and specifications to implement an open banking architecture for your country or your bank. ���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! API analytics can help see how the exposed APIs are performing and how they can improve. ]v4���e�Q�q9a���-��v�:�;��G0\� �ȃ��5\z��״�Z��!��}t� To identify what the key requirements of an open banking platform are and how they can be implemented, selecting the right technology is a top priority. Banking Information System Architecture Taking into account the nature and diversity of activities performed by banking institutions, information systems providing support have a high degree of complexity rendering it difficult to clearly delimitate their architecture. Among all the key requirements, customer experience also takes the highest priority. Authenticating users only via one authentication factor is not enough. 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. ���4� � YeLo Bank, a digital-only, mobile-first neobank focused on serving mass-market consumers, has won the AWS Startup Architecture Challenge of the Year 2020 India finals. The bank should properly design how to test and verify the whole platform before putting it in production. There can be different types of testing involved including integration, system, security, user acceptance, and stress testing. System analysis is used to analyze and design any 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. This proposed system overcomes the lacking of the existing manual system. They have come up with different standards and specifications that have evolved over time while doing a lot of experiments and gathering knowledge around this area. 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. This is why a BIAN-based Enterprise Architecture is highly essential as we journey more and more towards Open and Embedded Banking interconnecting partners and FinTechs, not just in the Philippines, but also throughout the region". 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. So there should be proper fraud detection solution connected to this platform and if the bank already has a fraud detection solution a bank can be able to connect it without buying new solution. Especially when making payments through the open banking platform, frauds can happen. Over the years, banks have added more technology. There’s now online banking to consider, as well as additional software for mortgages, treasuries, and investments. The increasing complexity of IT applications has influenced every industry, and banking is no exception. Three ways have been identified in different open banking implementations to revoke the given user consents: When a third party wants to consume APIs from banks they would typically come to the bank’s API store where they can explore existing APIs that are published and see what is available to develop their applications. Service-oriented architecture (SOA) refers to the frameworks and processes that enable banking application functionalities to be provided as sets of services relevant to specific business functions. 0 When sharing customer data with third parties, banks need to get customer consent. Banking Case Study The banking case study in this series of real-world enterprise architecture projects was for an innovative regional bank. Architecture 1: When the bank provides the service directly to the customer The setup will have a web server, application server and the database at the bank’s premises. There are some operational requirements that a bank needs to consider when thinking about an open banking architecture. The bank provides an interface to customer care officers to search for and revoke the consent on behalf of the customer when the customer comes to the bank and asks to revoke the consent. The OLYMPIC Banking System's SOA technology allows the system readily to inter-operate with existing software and external networks. Apart from that, it is important to display analytics on how their applications are performing and send notifications when a faulty invocation happens or any abnormal API invocation pattern is identified. Banking business architecture starts with banking business capabilities model, and it is the basis for the digital transformation that banks the world over are embarking on. Managing consent means it gives an authority to the bank customer to control his personal and financial data in terms of whom they may be shared with, for what purpose and for what period. Robust stress-testing will ensure that the open banking platform is capable of dealing with not only anticipated demands but also higher-than-usual peak periods. Banks need to implement a security layer for exposed APIs. The bank also offers several web facilities aiding customers in account management. In addition to all of the above requirements, an open banking platform should provide proper API management capabilities to both third parties and API developers of the bank. On the other hand, when terminating the support of a particular API, there should be a timeframe where the API is in a deprecated state so that third parties can move to new APIs during that time. Content Diagram for a Banking System Bank API developers will not publish the API straightaway. So when the third party communicates with the bank with those credentials, the bank calls to the directory service, verifies the third party and allows access to the APIs. Lenders in ancient Greece and during the Roman Empire added two important innovations: they accepted deposits and changed money. Once the API specification is defined, and then exposed to the outside, banks need to think about how to restrict access to the APIs to authorized third parties only. 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. Some ancillary services like balance enquiry, cheque collection are also provided. There should be multi-factor authentication where at least a combination of two factors of knowledge, ownership, and inherence should be used. Implementing a successful open banking architecture is critical for a bank to fully leverage the benefits of open banking. 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. Then the bank calls the customer, maybe via a mobile application of the bank to get the user consent. %%EOF The bank provides an API to revoke the consent so that third parties can provide a revoking functionality through their applications. The bank staff should be trained to handle and fix the incidents within the defined service-level agreement (SLA). We ask: what is a financial market, what is a bank, and what determines the economic role of each? The banking system are used manual working but when we used online banking system it is totally virtualization process which avoid manual process and converts it in automatic process. 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. Some banks want it to be fully automatic. So then the third parties can consume those APIs and generate new services to the bank’s customers. Until recently, such replacements gave many CIOs pause, since the magnitude of the change translated into high costs and high risks. We are working towards the Australia CDR specification too. 8/11/2020; 12 minutes to read +1; In this article. When a third party encounters a problem with a bank's open banking platform, it could have a direct impact on a third party's ability to provide its service, which in turn has the potential to cause loss of business, reputational risk, additional resource requirements and negative outcomes for customers. The main services include receipt and payment of cash only. This website uses cookies so that we can provide you with the best user experience. 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+! In doing that, some banks provide a signup form where third parties can come and fill the form to get access. Considering how third parties engage with the open banking platform, having an API store to list the APIs that are published by the bank and capabilities to create applications, subscribe to the APIs, generate keys, and API monetization is essential.
2020 architecture of banking system