This deck highlights the WSO2 Open Banking offering and how Banks and Fintechs in South Africa 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. Check out our upcoming workshops: https://wso2.com/events/workshops/

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

2. Our Expertise
in
Financial Services
Expense
s
Profit

3. Current Challenges in the
Banking Industry

4. Making a Case for Financial Inclusion
BANK ACCOUNT
received wages to
an account
saved at a financial
institution
of borrowings are
from a Bank adults have
a bank account
22% 9% 69%
21%
Credits: Global Financial Index -2017

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 𝛂
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
15-1
9
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 𝛂
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
15-1
9
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%
84%16%

9. Gen 𝛂
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
15-1
9
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. Banks expose their customer payment and account data, with customer consent, to
Third-party Providers (TPPs) via APIs.
Open Banking: Placing the Customer in Control

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
Utility Payment
Service
More ….
Open Banking
PlatformCustomer
Third Party
Apps
Merchants

28. WSO2 Open Banking - Componentized
Architecture

29. WSO2 Open Banking - Componentized
Architecture

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

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

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. A Few Stories
from the Trenches

39. The Evolution 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 Testing
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. Societe Generale - Subsidiary in Bulgaria
● Started with a PoC using Berlin 1.2 spec - Accounts API with simple SCA
● Achieved sandbox compliance on Berlin spec v1.3 and full compliance by June 2019
JUN
JAN
FEB
AUG
OCT
NOV
JAN
MAR
SEP
Berlin
1.0
Berlin
1.2
Berlin
1.3
Original PSD2
Deadline
External Testing
Deadline
Final Deadline
2017 2018 2019
JUN

42. ● 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

43. Societe Generale - Subsidiary in Germany
● Started with Berlin spec v1.2 mini sandbox implementation
● Achieved Sandbox compliance by March ‘19 and full compliance
implementing Berlin spec v1.3 by September ‘19 deadline
JUN
JAN
FEB
AUG
OCT
JAN
MAR
SEP
Berlin
1.0
Berlin
1.2
Berlin
1.3
Original PSD2
Deadline
External Testing
Deadline
Final Deadline
2017 2018 2019
AUG
DEC

44. ● 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

45. First Open Banking Implementation
● Mid-sized bank in the UK
● Initial requirement - Compliance by Jan ‘18 deadline
● Compliance achieved with just 2 months of implementation effort
● Has been recently upgraded to OB UK v3.1.2 for Sept ‘19 compliance
JUN
JAN
MAR
SEP
Original PSD2
Deadline
External Testing
Deadline
Final Deadline
2017 2018 2019
MAY
OBUK
V1.0
NOV
MAR
OBUK
V2.0
SEP
NOV
OBUK
V3.0
OBUK
V3.1

46. 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

47. 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

48. Key Learnings

49. 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
Capabilities not
limited to compliance
Wider use of your
investment
Future of Banking
Expands the Banks
reach
KYC better (tailored
offers, risk aversion)

50. https://wso2.com/solutions/financial/open-banking/
Check out WSO2 Open Banking

51. THANK YOU
wso2.com