This document discusses Open Banking and PSD2 compliance for banks. It notes the upcoming deadlines for banks to have external testing facilities by March 2019 and full PSD2 compliance by September 2019. It then provides an overview of the key Open Banking API specifications from the UK and Berlin Group. The document outlines challenges banks may face in compliance and how WSO2 Open Banking can help achieve deadlines through its componentized architecture and regulatory expertise. It argues that Open Banking creates opportunities for banks through expanding distribution channels, enabling upselling and cross-selling, and generating new revenue streams.

1. Open Banking and PSD2
Are your APIs ready for external testing?
Seshika Fernando
Head of Financial Solutions
WSO2
Kaveen Rodrigo
Software Engineer - Open Banking
WSO2

2. ● Regulatory Technical Standards (RTS) entered into force in
March 2018
● Upcoming deadlines
○ March 2019 - Testing facility by all banks
Article 30 (RTS)
○ September 2019 - Full PSD2 compliance by all banks
Article 38 (RTS)
Status Quo

3. Key Features Required for Compliance

4. Popular Open Banking
API Specifications

5. Open Banking UK
September
Specification V3.0
Introduced with two new APIs for
confirmation of funds and notifications.
November (Expected)
Specification V3.1
February
Specification V2.0
Revised API changes and support for PSD2
in-scope payment accounts.
March
Open Banking Directory
The Directory helps account providers to
verify the identity of regulated TPPs

6. Berlin Group NextGEN PSD2
September
Specification V1.2
Consent Related Revisions on APIs
October
Specification V1.3
revisions on APIs and SCA methods.
February
Specification V1.0
Framework released initially.
May
Specification V1.1
Minor revisions on APIs

7. ● Version 1.3 released in April.
● Latest specification version 1.4 was released last September.
○ Payment and Transfers APIs were aggregated in this release.
STET

8. ● Lack of regulatory expertise
● Lack of resources to follow the regulatory/spec changes
● Lack of technology components
● Inability to change existing tech
● Lack of specialized skills
Key Challenges for Banks

9. ● Covers all Regulatory Requirements
● Supports OB UK, Berlin Group and STET specifications
● Componentized Architecture allows Mix & Match
● Integration layer makes it easily pluggable
● Team of Open Banking regulatory experts
● Rich network of European partners
WSO2 Open Banking

10. Achieving upcoming deadlines with
WSO2 Open Banking

11. Meeting the
March Deadline*
Task Duration (days)
Discovery, Dev/Test Deployment and
Deployment Documentation
5
Implementation
- Mock Backends
- TPP Onboarding
- SCA
- Consent Mgmt
- TRA
- Branding
10
Sandbox Environment
- Deployment
- Functional Testing
- Systems Integration Testing
- Security Testing
- User Acceptance Testing (UAT)
12
Training 5
Total 32
* With 2 WSO2 Open Banking experts

12. Meeting the
September Deadline*
Task Duration (days)
Implementation
- Core banking integration
- Custom User stores
- TPP Onboarding
31
Deployment Automation 4
Testing (DEV/TEST, PROD)
- Functional
- Integration
- Security
- Performance
- UAT
20
Documentation & Training 5
Total 60
* With 2 WSO2 Open Banking experts

13. Open Banking
What’s in it for the banks

14. Expanding Distribution Channels
TPP A TPP BBANK

15. Upselling and Cross selling
Consolidated customer
account and payment
info across
multiple banks
Bank A
Bank B
Bank C
Merchant
TPPTPP

16. New Revenue Streams
Consolidated customer
account and payment
info across
multiple banks
Bank A
Bank B
Bank C
Merchant
TPPTPP

17. THANK YOU
wso2.com