Transforming for a Digital Future A New Business Architecture for Banking

Transcription

1 Transforming for a Digital Future A New Business Architecture for Banking Likhit Wagle General Manager Financial Services This document is solely for the use of client personnel. No part of it may be circulated, quoted, or reproduced for distribution outside the client organization without prior written approval from IBM. This material was used by IBM during an oral presentation; it is not a complete record of the discussion IBM Corporation 1

2 API Connect v2018 Industry s First and Only Multi-Cloud API New container and micro-services based design Container/Kubernetes & VMware support Unmatched scalability and performance Independent scaling of API Connect components API Test & Monitor for no-code test generation Simplified tiered pricing 2

3 DataPower API Gateway A new, fast, performant and secure service Up to 5X increased performance with natively built API Gateway Secure to the core with self-contained signed & encrypted image Multi-cloud scalability and extensibility Optimized drag & drop built-in policies Autonomic Gateway cluster management with self-heal capabilities 3

4 IBM Open Banking Sandbox link

5 Thank you Pietro Lanza Direttore Generale Intesa IBM Blockchain Leader IBM Italy 5

6 IBM Open Banking

7 The Banking Industry is facing unprecedented disruption Customer Expectations Competition through digital capabilities Increasing Regulatory Requirements Increasing Security & Fraud risk through expanding channels Intense Competition for Talent Economic value is shifting to the front office (65% profit, 20% ROE) External APIs and Connected Core top 10 initiatives * 50% of global tier 1/2 banks will offer 5+ external APIs* by year-end Regulatory requirements (i.e., PSD2) driving action in all geographies Open Banking is critical to success in today s competitive banking ecosystem 2018 IBM Corporation 7

8 VALUE IBM s Hierarchy of Value Market Process Technology 2018 IBM Corporation 8

9 Introducing the IBM Open Banking Market IBM Open Banking Marketplace fintech marketplace ecosystem A marketplace focused on curated content providing value for both banks and fintechs Process Technology Banking Services Layer components processes Industry Foundation technical integration composer runtime design run tools Cloud PaaS - ICP cloud on premise Standards-based solution approach, built by IBM & Partners, prioritized by industry demand Industry agnostic foundation that packages solutionlevel composer, security components, solution monitoring, auditing, etc. End-to-end hybrid platform to enable core to cloud with flexibility, scalability, security, & portability Legacy System Legacy System Legacy System 2018 IBM Corporation 9

10 PSD2 readiness Second Payments Services Directive, PSD2 for short, is a European regulation that mandates banks have a secure way for customers to authorize a third party provider for direct access to: 1. Account & transactional data 2. Initiating & authorizing payments Banks need to comply before October 2018 The IBM PSD2 solution enables: 1. Strong Customer Authentication (SCA; oauth + 2FA) 2. Entitlements Flexible and fined grained access control 3. API versioning and management 4. Fraud and penetration monitoring 5. Developer tools (SDKs, sandboxes, documentation) 6. Connectivity to payment standards (e.g. ISO20022) and major products (e.g. IBM FTM) 10

11 IBM Open Banking PSD2 Pack IBM s end-to-end PSD2-compliant instant payments solution is based on the IBM Open Banking API Management tool required, API Connect (APIc) preferred: API proxy, developer portal & sandbox Open ID Connect FAPI support Integrated OAuth security framework Kubernetes Cluster required, ICP or IBM Container Service preferred: Integrated catalog facilitates add-on discovery and installation Enhanced admin tools and monitoring IBM Cloud for Financial Services / 2018 IBM Corporation PSD2 Payments Pack Payment APIs Admin APIs IBM API CONNECT IBM CLOUD PRIVATE / IBM CLOUD FOUNDATION LAYER Payments OBIE compliant Payment APIs (payment initiation, payment submission, payment initiation status, payment submit status, get banks, merchants) Transaction History Repository oauth Services Pre-defined payment processing workflows: API Controller, Transformation Layer, Transmit & Receive Core System Integrations (adaptors): ISO20022 adaptor (instant payments adaptor) Guided by BIAN and PSD2 standards Msg Xform API Govern Marketplace Data Insights Admin Portal Logging PSD2, ISO20022, FTM Adapters Developer Portal Config. Mgmt. Workflow Orchest. CORE PAYMENT SYSTEMS Open Banking Foundation BIAN-based Workflows & Message Ontology (based on business functions) Repository for the WF and Messages Workflow mechanism Message queues Logging Monitoring Alerting Configuration Security Auditing/Traceability Deployment models: docker/k8/helm API Connect functionality Tooling for WF and Messages (creation/visualization) Administration (leverage ICP as much as we can) Catalog (integration to marketplaces and 3 rd party) Developer Tutorial Open Banking WFS Marketplace Other IBM Products Client systems 11