Cloud-based Open Banking
In the feature video executives from Starling Bank talk through their AWS implementation achieving an entirely Cloud-based digital bank.
Built exclusively on AWS, Starling Bank’s 100% cloud-based, mobile-only banking solution satisfies regulators in terms of its resilience, security, and reliability. It also satisfies consumers by giving them greater control over their data, streamlining the account opening process, accelerating payments, and providing access to innovative new services developed from scratch with open APIs, a developer platform, integration with Apple Pay, Google Pay, and Fitbit Pay and a custom backend ledger and payments integrations.
Key highlights include:
- Best practices for implementing API and IdP TLS Authentication and OAuth2 Hybrid Flow.
- A payment / authentication flow model featuring Open Banking standardized roles PSU (Payment Services User), ASPSP (Account Servicing Payment Service Provider), CBPII (Card Based Payment Instrument Issuer).
- A Cloud solution design for an N-tier API architecture, with key functionality provided by Identity vendors Forgerock and Ping Identity, and utilizing AWS services including API Gateway, CloudHSM and Shield.
Digital Identity Architecture
Digital Identity is such a strategically important foundation for Open Banking that players like Mastercard have taken the direct step of launching an Identity initiative with Microsoft.
Key standards groups include the OIX, who provide the framework for facilitating identity federations across a number of industries such as Government, underpinning the UK Government’s Verify service.
In their white paper ‘Self Certification and Mandatory Assessment Regimes‘ they explore a comparison between the Verify scheme and how it might be applied in banking.
ForgeRock are one of the Identity vendors referenced in the AWS Cloud implementation of Open Banking as a provider of the core Identity functionality, and in their presentation Implementing Open Banking with ForgeRock they expand upon this functionality in detail.
As Bloomberg writes Logging into your bank account is now a $3 billion business.
They were writing about the super heated segment of the tech sector that forms a keystone component part of Open Banking: Identity authentication.
In this case reporting on Plaid enjoying a VC frenzy to invest in their company, to facilitate their acquisition of Quovo.
TechCrunch writes the deal will enable a merged synergy between the two complimentary areas of focus for each:
While Plaid helps link your checking and savings account to modern financial apps like Venmo, Acorns and Robinhood, Quovo’s APIs are aimed at the investment side of the financial services market with up and coming customers like Betterment, Wealthfront and SoFi, and established players like Stifel, Vanguard, Empower Retirement and John Hancock.
Payment Source writes about the critical foundation role of Digital Identity plays in facilitating Open Banking services, highlighting how more than 120 countries have digital passports and more than 60 countries have national ID cards, and that ultimately synthesis of them all into a single global Identity framework is a shared goal for many sectors such as government as well as banking. Major initiatives include ID2020:
And the ID2020 initiative aims to use digital ID to boost financial inclusion, noting World Bank figures that show more than 1 billion people do not have a reliable ID. The ID2020 initiative, whose supporters include Accenture, Microsoft and the Hyperledger project, plans to use blockchain and the wide availability of smartphones to build sharable identity.
Featured Vendor: Trusona
Trusona enables rapid delivery of Open Banking compliant authentication services via your existing mobile apps enabling Third Party Providers to seamlessly authenticate your customers and capture consent.
Their PSD2 solution offers:
Trusona For Your Organization
Trusona’s passwordless multi-factor authentication (MFA) offers a PSD2 compliant blend of dynamic authentication and patent-pending anti-replay technology embedded in your existing mobile apps, making it the most secure and seamless way to enable strong authentication of your customers across any channel.
Trusona For Your Customers
Designed with the user experience in mind, Trusona’s industry-leading, passwordless MFA is preferred by 7 out of 10 people to legacy usernames and passwords. Trusona means your banking customers never need to remember or type anything to authenticate. Bulletproof security and happy users.
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