obconnect

Open Banking Compliance Architecture

What is Open Banking Compliance Architecture?

In the age of digital finance, compliance is not just a requirement but a cornerstone for trust and integrity. obconnect specialises in Open Banking architecture designed for banks and financial institutions that need to meet PSD2 Regulatory Compliance.

With PSD2, organisations must provide real-time access to APIs for FCA Regulated Third Party Suppliers (TPPs) and Fintechs. These APIs facilitate Account Information Requests and Payment Initiation.

Open Banking is the UK’s standard approach for PSD2 compliance, and with obconnect, achieving this is streamlined and secure.

How Open Banking Compliance Architecture works

When complying with Open Banking, Banks must securely expose information to Regulated TPPs. To do this, there is a process whereby TPPs must register securely with Banks.

Then with the consent of the Customer be able to access Account Information or Initiate Payments on behalf of the Customer. The components and architecture to deliver this Open Banking compliance are very complex.

obconnect can help Banks define and deploy their architecture. We also provide a Software as a Solution (SaaS) that banks can plug in to deliver their compliance allowing obconnect to take the strain of the complex and difficult componentry.

TPP Registration

An expert in Open Banking Dynamic Client Registration, obconnect provides guidance and software to enable Banks to allow TPPs to seamlessly register onto the Bank’s Open Banking Platform.

Consented Requests

The system enables TPPs to execute customer-consented requests for account information or payment initiation. One of the most complex parts of Bank side compliance is Consent processing. Obconnect can help you build this capability or provide an open banking platform that fits your needs.

Data Sharing & Payment

The system seamlessly links the TPP requests through the Bank’s systems to the back end, enabling data retrieval and payment processing.

Benefits of Open Banking Compliance Architecture

The systems enable Banks to safely expose their APIs and accept Payment Initiation Services.

Reference Architecture

We provide a production-ready reference Open Banking architecture that serves as a blueprint for banks looking to build their own solution.

SaaS Solutions

For institutions that prefer a ready-made solution, our SaaS platform offers a proven and efficient means to achieve Open Banking compliance.

Expertise

Our team possesses the specialised skills and know-how to ensure your compliance architecture is robust and scalable.

Frequently asked questions – FAQ

What is Open Banking?

Open Banking is a financial services practice that provides third-party financial service providers open access to consumer banking, transactions, and other financial data from banks and non-bank financial institutions through the use of application programming interfaces (APIs). The Open Banking architecture is designed to foster innovation, enhance transparency, and promote competition in the financial sector by enabling secure and consensual data sharing.

How long does it take to comply with Open Banking?

The timeframe to achieve Open Banking Compliance can vary significantly depending on the existing systems and processes of the financial institution in question. Implementing the Open Banking Compliance Architecture typically involves several stages, including initial assessment, planning, development, testing, and deployment. This process can take from a few months to over a year, with ongoing efforts to maintain compliance as regulations evolve.

What are the benefits of Open Banking?

The benefits of Open Banking are manifold, encompassing increased financial transparency for consumers, enhanced customer experience, and the development of innovative financial services. Open Banking architecture facilitates the creation of more personalised financial products, improves efficiency in payments and transactions, and enables a more competitive landscape with better options for consumers. For financial institutions, Open Banking Compliance paves the way for strategic partnerships and access to new market segments.

Who needs Open Banking?

Open Banking is essential for a wide range of stakeholders in the financial ecosystem, including banks, fintech companies, third-party providers (TPPs), and consumers. Financial institutions need Open Banking to stay competitive and compliant with financial regulations. Fintechs and TPPs leverage Open Banking to develop innovative financial solutions, while consumers benefit from more tailored services, better control over their financial data, and enhanced security.