Industry

Banking & finance

Atomization in banking and finance has been highly focused inward for years, particularly marked by the introduction and optimization of internet banking.

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The start of a worldwide movement

Thanks to Open Banking and PSD2 regulations, a worldwide movement started in 2019, leading to a tremendous boost in data exchange across financial institutions and between financial institutions and their clients. Yenlo’s Connext Platform offers solutions for banks and financial institutions to safely and quickly make this data exchange, and, most importantly, in accordance with Open Banking and PSD2 specifications.

Open banking scaled

Open Banking & PSD2

The Open Banking principle concerns the linking of several banking matters to just one single bank of preference. The end-user has control in this process, as they determine which bank they chose.

Under the PSD2 regulations, financial institutions in Europe are legally obliged to make Open Banking available to their clients. In other parts of the world, like America and Asia-Pacific, commercial awareness of this Open Banking and PSD2 movement is so strong that it leaves financial institutions no other choice but to anticipate upcoming changes.

Practically, financial institutions will have to give access to data concerning financial matters of clients to validated third parties. This constitutes major complications for many financial institutions, particularly in assuring the protection of API’s and receiving the consent of end users for these kinds of data transfers.

The Connext Platform for Open Banking by Yenlo is based on the WSO2 Open Banking product and hence offers a solution for all financial institutions anticipating integration of Open Banking and/or PSD2 regulations. Important factors like scalability, security, and interoperability are taken into account from scratch with our Connext Platform, making it a carefully secured platform part by design instead of a separate addition that needs to be implemented by financial institutions.

The second complicating factor in finance and banking is Consent Management, i.e. the approval of the end client. End clients need to give their specific approval for every step involved in Open Banking, such as sharing financial data with other banks. Again, the Connext Platform offers a solution with an integrated Consent Management workflow according to the PSD2 directives.

Case study: Hanseatic Bank

Hanseatic Bank (a Société Générale affiliate) uses WSO2 Open Banking through Yenlo’s Connext Platform in order to comply with their PSD2 and Open Banking. Read the complete case study below.

Hanseatic Bank client case scaled

“In order to comply with the Open Bank API standards, we decided to work with WSO2 technology. Yenlo was selected as the system integrator because of their extensive WSO2 experience. Together we created an efficient, scalable and secure Open Banking platform”.

Michael Luft Head Of IT, Hanseatic Bank
Read the client case