This deck highlights the WSO2 Open Banking offering and how Banks and Fintechs can benefit from the solution. The capabilities in the solution and a few case studies on how banks have used our solution and used the components beyond their compliance requirements for digital transformation. Watch the recording of the sessions from WSO2 Integration Summit Brazil here - https://wso2.com/integration-summit/brazil-2019/

1. Open Banking
Bringing You Closer to Digital Transformation
u Vidura Gamini Abhaya, Senior Director — Solutions Architecture WSO2
INTEGRATION

2. Our Expertise
in
Financial Services
Expenses
Profit

3. Current Challenges in the Banking
Industry

4. BANK ACCOUNT
received wages to an
account
saved at a financial
institution
of borrowings are
from a Bank adults have
a bank account
14% 9% 70%
4%
Credits: Global Financial Index -2017
Making a Case for Financial Inclusion

5. Credits:https://tech.co/millennials-killing-broke-business-sucks-2017-09

6. Characteristics
Maturists
(pre-1945)
Baby Boomers
(1945-1960)
Generation X
(1961-1980)
Generation Y
(1981-1995)
Generation Z
(1995-2012)
Attitude toward
technology
Largely disengaged
Early information technology
(IT) adapters
Digital Immigrants Digital natives
“Technoholics” - entirely
dependent
On IT: limited grasp of
alternatives
Signature product
Automobile Television Personal Computer Tablet/smartphones
Google glass, graphene,
nano-computing,
3D printing,
driverless cars
Communication
media
Formal letter Telephone Email and text message Text or social media
Hand-held(or integrated into
clothing) communication
devices
Communication
preference
Face-to-face
Face-to-face ideally, but telephone
or email if required Text messaging or email
Online and Mobile
(text messaging) Facetime
Preference when
making financial
decisions
Face-to-face meeting
Face-to-face ideally, but
increasingly will go online
Online—would prefer face-to-face
if time permitting Online
Solutions will be digitally
crowd-sourced
Credits: https://wealth.barclays.com/global-stock-and-rewards/en_gb/home/research-centre/talking-about-my-generation.html

7. Gen !
9%Gen Z 34%Gen Y 29%
Gen X 13%
Baby Boomers 13%
0
200
400
600
800
Population(millions)
0-4
5-9
10-14
15-19
20-24
25-29
30-34
35-39
40-44
45-49
50-54
55-59
60-64
65-69
70-74
75-79
80-84
85-89
90-94
95-99
100-104
Age Group
Banking Consumer Distribution Today
Maturists 3%

8. Gen !
9%Gen Z 34%Gen Y 29%
Gen X 13%
Baby Boomers 13%
0
200
400
600
800
Population(millions)
0-4
5-9
10-14
15-19
20-24
25-29
30-34
35-39
40-44
45-49
50-54
55-59
60-64
65-69
70-74
75-79
80-84
85-89
90-94
95-99
100-104
Age Group
Banking Consumer DistribuLon Today
Maturists 3%
84%16%

9. Gen !
9%Gen Z 34%Gen Y 29%
Gen X 13%
Baby Boomers 13%
0
200
400
600
800
Population(millions)
0-4
5-9
10-14
15-19
20-24
25-29
30-34
35-39
40-44
45-49
50-54
55-59
60-64
65-69
70-74
75-79
80-84
85-89
90-94
95-99
100-104
Age Group
Banking Consumer Distribution in 10 Years
Maturists 3%
95%5%

10. Digital Banking Requirements

11. The Evolution of Banking Channels

12. Too Many Channels

13. Open Banking to the Rescue

14. Consumers Demand Their Own Experience

15. Open Banking: Placing the Customer in Control
Banks expose their customer payment and account data, with
customer consent, to Third-party Providers (TPPs) via APIs.

16. Thriving with Open Banking

17. Expanding Distribution Channels

18. Expanding Distribution Channels

19. Expanding Distribution Channels

20. Expanding Distribution Channels

21. KYC Like Never Before

22. KYC Like Never Before

23. KYC Like Never Before

24. KYC Like Never Before

25. WSO2 Open Banking

26. Key Features Required for Open Banking

27. Other Banks
Example Open Banking Architecture
Internal Bank
Network
Core Banking System
Card Management
System
Uflity Payment Service
More ….
Open Banking
Platform
Customer
Third
Party
Apps
Merchants

28. WSO2 Open Banking - Componentized Architecture

29. WSO2 Open Banking - Componentized Architecture

30. ImplemenLng Open Banking
Optional - TRA, Fraud Detection
Configure Analytics
Configure Consent Management
Configure Strong Customer Authentication
Setup TPP Onboarding Workflow
Deploy APIs

31. The WSO2 Advantage for Open Banking
Regulatory and domain experLse with global banks
To help you understand the best technology fit for open banking
Shorter technology implementaLon cycles
that support aggressive project deadlines
ComponenLzed soluLon architecture
that is customizable to any use case
Extensible
to support banks ongoing and upcoming digital banking inifafves

32. Open Banking
for Digital Banking

33. Spaghetti Architecture

34. Multiple Identities

35. Siloed Analytics

36. Technology Components of Open Banking

37. Opening the Door to Digital Transformation

38. Case Studies

39. The EvoluLon of PSD/2 within Europe
STET
V1.3
JUN
NOV
JAN
FEB
MAR
APR
AUG
SEP
NOV
JAN
MAR
SEP
OBUK
V1.0
OBUK
V2.0
OBUK
V3.0
STET
V1.2
STET
V1.4
Berlin
1.0
Berlin
1.2
Berlin
1.3
OBUK
V3.1
Original PSD2
Deadline
External TesLng
Deadline
Final Deadline
2017 2018 2019

40. ● WSO2 is a Strategic Partner
● Multiple Subsidiaries from different countries
● Each with unique requirements and architecture
● Certain requirements such as security governed globally
● Different spec’s implemented
● Various authentication providers used
● Some reused their existing components
● Smaller entities selected the minimum deployment option
● Larger entities went for deployments that suited their future needs (i.e., API
management beyond OB)
Societe Generale
2nd largest bank in France

41. ● Integrated to work with Gemalto for
SCA (2nd Factor) and Fraud Detection
● Reuse existing Integration layer based
on WSO2 EI
● Semi-distributed setup with API
gateways scaled out
● Custom integration flows to support
domestic payment processing and
secure foreign payments
Societe Generale - Subsidiary in Bulgaria

42. ● Federated Authentication to existing
IdP for SCA (1st factor)
● SMS-OTP 2nd factor with WSO2 IAM
coordinating SCA flow
● Does API Management beyond Open
Banking
● Two-layer architecture, where the outer
layer handles OB APIs; the inner layer
handles internal APIs.
● The outer layer communicates with the
inner layer
Societe Generale - Subsidiary in Germany

43. First Open Banking Implementation
● Started off with the minimum
deployment
● OneSpan Authentication server
integration for SCA - 2nd factor
● Uses WSO2 products to integrate
internal systems and to
supplement core banking
facilities

44. Ongoing Implementation
Information
Store
AISP OLB
EVRY
CoFEquation
Beneficiary Infor &
Statement Lookup
Account Balances
Fetch Account
Balances
Account Balances
DB
AISP
OLB
EVRY
CoF PISP
DB
DB
SSIS
Equation CGI-BIN
OB OB
NIS
Trickle Feed
Processing
start/stop
Beneficiary and
Statements Data
Retrieve Account
Balance
Account
Trickle Feed
Eod Process
IBM MQ
Account Balances
DLT
ETL

45. Key Learnings

46. Key Learnings
Open
Banking
DIY vs
Complete
Solution
Building vs Buying
Buy & get there faster
Do not buy just the
Technology (Pay for the
expertise)
BYO
Reuse existing
capabilities you
have
Maximise your
existing
investments
Components
Think
Beyond
Deadlines
Compliance beyond
deadlines
Capabilifes not limited
to compliance
Wider use of your
investment
Future of Banking
Expands the Banks
reach
KYC better (tailored
offers, risk aversion)

47. Check out WSO2 Open Banking
https://wso2.com/solutions/financial/open-banking/
http://gg.gg/fr648

48. THANK YOU
wso2.com