If you are a financial institution in Europe, you would be in one of three places when it comes to PSD2: ready to take PSD2 by the horns, making some progress with compliance but still trying to understand the big picture, or unsure of where to start. The good news is that it doesn’t matter where you’re at. WSO2 Open Banking offers a solution that addresses all compliance requirements. It doesn’t stop there. It can open up your business to broader revenue generation opportunities through PSD2 in the context of digital transformation. Join Seshika Fernando, head of financial solutions at WSO2 as she explores The role of PSD2 in redefining banking as we know it. The core capabilities of WSO2 Open Banking including the WSO2 API Management platform that enables opening APIs in a secure and controlled manner. How WSO2 Open Banking can support your technology infrastructure for capabilities beyond banking. A demonstration of the solution - https://wso2.com/solutions/financial/open-banking/

1. WSO2 Open Banking
Digital Transformation through PSD2
Seshika Fernando
Head - Financial Solutions

2. OPEN TECHNOLOGY FOR AGILE DIGITAL BUSINESS
2
Build internal and
external developer
ecosystems with an
API marketplace.
Manage identity,
security, and
privacy across
your digital
business.
Make mobile and IoT
devices integral to
your digital business.
Create real-time, intelligent,
actionable business insights
and data products.
Platform enable your digital
business with “micro-services”
and “micro-integrations”.

3. Payment Services Directive 2
EU Directive that applies to
all Banks operating in the EU
that regulates payment
services throughout the EU,
with a compliance deadline of
January 2018

5. Pain Points
Security cannot
be compromised
especially for
customer data
Lack of clear
guidance on
implementation
Average length of
IT projects is
more than time
left to comply

6. Open Banking: Changing the way we transact
Banks expose their customer payment and account data, with customer consent, to
Third party Payment Providers (TPPs) via APIs.
TPP
PISP/AISP
Bank A
Bank B
Bank C
Merchant
Now PSD2
Bank A
Bank B
Bank C
Merchant

7. Compliance Requirements
● API Specification
○ API Definitions
○ Secured API invocation
○ API Usage Monitoring
● Strong Customer Authentication
○ 2 Factor Authentication (SMSOTP, FIDO, Duo, MePin)
○ Adaptive Authentication
○ Consent Management
● Incident Reporting
○ Security Incident Reporting [Transactions affected,server
downtime,Economic Impact,Reputational Impact]
○ Finding an Incident - Anomaly Detection

8. ● API Specification
○ API Definitions
○ Secured API invocation
○ API Usage Monitoring - Per Business unit, per PISP, per customer group
Compliance Requirements - 13th
Jan 2018
● API Specification
○ API Definitions
○ Secured API invocation
○ API Usage Monitoring
● API Manager
● API Security + SCA
● API Analytics
● API Monetization
WSO2 Open Banking

9. Process Flow
Credits to Dinosoft Labs from Noun Project
Checkout
Item
Login Page
2 Factor Authentication
Customer Consent
Initiation
payment info
1
2
3
4
PISP
302
5
Token 6
Payment
Complete
7
Settlement

10. Demo

11. Open Banking: The opportunities
Bank A
Bank B
Bank C
Merchant Bank A
Consolidated
customer account and
payment info across
multiple Banks
TPPTPP

12. Step 1
Comply
Expose data securely
Step 2
Reclaim Loyalty
Become TPP
Step 3
Digitally Transform
Offer services beyond banking
2019 20202018
Plan beyond 2018

13. WSO2 Open Banking
● API Manager
● API Security + SCA
● API Analytics
● API Monetization
PSD2 Compliance
● API Integration
● Federated Authentication
● Fraud Detection
● API Analytics
● Dashboards
TPP Provider
● Web/Mobile App Suite
● Insight Sales
● Required Integration
Digital
Transformation

14. Other Financial Solutions
● Fraud Detection
● Real-time Risk Management
● Stock Market Surveillance

15. Thank You!