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BIAN Webinar;
Global Open Banking Initiatives and the added value of the BIAN Open
Standards
June 29th, 2020
Copyright BIAN 2020 | Banking Industry Architecture Network
A Warm
Welcome
to YOU –
Dialing in
From all
around the
globe!
2
A Warm
Welcome to
YOU –
Dialing in From
all around the
globe!
Copyright BIAN 2020 | Banking Industry Architecture Network
On Today’s Webinar
• Hans TesselaarBIAN Executive Director
• Antonio PlaisOwner and consultant at Centus Consultoria e Negócios, Brazil
• Arnab MitraBIAN Program Manager
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Copyright BIAN 2020 | Banking Industry Architecture Network
Short intro in
Portuguese /
Curta introdução em
português
Antonio Plais is owner and consultant at Centus Consultoria e Negócios, a Brazilian company focused on Enterprise Architecture and Decision Management services and tools. He's working in ICT, marketing and consultancy since 1974, with extensive experience in business strategy, knowledge management, information technology, enterprise architecture and product development. He's a TOGAF and ArchiMate certificated professional and trainer, with graduation in Business Administration and specialization in Marketing.
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Copyright BIAN 2020 | Banking Industry Architecture Network
Introduction | Mission
To provide the world with the best banking inter-
operability architecture. To be the banking
technology standard.
Central objectives for IT in the banking industry are
to lower the IT and operational costs of the bank
and help banks mitigate the risks associated with
technology innovation. To provide a trusted
roadmap for constant innovation.
By collaborating and sharing in an open way, the
best expertise across our global ecosystem of
leading banks, technology providers, FinTech
players, academics and consultants to define a
revolutionary banking technology framework that
standardizes and simplifies the overall banking
architecture.
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Copyright BIAN 2020 | Banking Industry Architecture Network
Introduction | BIAN & Financial Institutions
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Copyright BIAN 2020 | Banking Industry Architecture Network
Introduction | BIAN & Partners
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Copyright BIAN 2020 | Banking Industry Architecture Network
Introduction | BIAN & Academic, Standard Bodies and Training Partners
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Copyright BIAN 2020 | Banking Industry Architecture Network
Open Banking to Open Finance
June 2020, Arnab Mitra
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Copyright BIAN 2020 | Banking Industry Architecture Network10
Open Banking WorldwideEU | PSD2 | Live
UK | PSD2, CMA | Live
Australia | CDR | Implementation
Canada | CDF | Consultation
Brasil |OB | Implementation
New Zealand | OB | Pilot-done
Japan | JBAA | Consultation
India | UPI | Live
Market Dirven Regulatory EncouragedRegulatory Mandatory
USA | Implementation / Live
Nigeria | OB | Implementation
ASEAN | Implementation / Live
China | Implementation / Live
Open Banking to Open Finance
Mexico | JBAA | Consultation
Copyright BIAN 2020 | Banking Industry Architecture Network
Open Banking Types
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Regulatory – Mandated
• Drivers
• Increase competition
• Protect consumer data
• Encourage innovation
• Banks in scope, must comply
• FinTechs must be regulated
• Consumer data access only upon
obtaining consent
• Product Scope: Defined
• Standards: Specified & detailed
Open Banking Initiatives Across the World
Market – Driven
• Drivers
• Encourage innovation
• Competitive Advantage
• Cost Reduction
• Banks and/or (Fin)Tech Led
• Product Scope: Varied
• Standards: Voluntary, Industry Networks
Regulatory – Encouraged
• Drivers
• Enhance collaboration
• Encourage innovation
• Financial Inclusion
• Product Scope: Prescribed
• Standards: Guideline, Encouraged
Copyright BIAN 2020 | Banking Industry Architecture Network
ASPSP (Bank)Trusted Third Party (TPP)Payment Service User (PSU)
eIDAS
Certificate
The PSD2 Open Banking UK Ecosystem
Regulatory – Mandated
National Competent Authority
(NCA) Register
QTSP (Qualified
Trust Service Provider)
Government
• The ECB creates PSD2
• Country (eg. the UK Treasury) put this into
Law (PSR)
• The Regulator (FCA) & Standards Bodies
(Open Banking UK) implement
Evolution
• Identification: eIDAS
• Authorisation, Scope: NCA Register eg.
FCA (UK)
• Regulations: PSD2, GDPR, eIDAS
TPP Security
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Open Banking
Copyright BIAN 2020 | Banking Industry Architecture Network
PSD2 – TPP / Regulated FinTech Qualification Criteria
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• General Principles
• Identification Details
• Programme of Operations
• Business Plan
• Structural Organisation
• Measures to safe guard Funds of Users
• Governance Arrangements & Internal Controls
• Procedures on Security Incidents & Customer Complaints
• Business Continuity Arrangements
• Security Policy Document
• Identity & Suitability Assessment of persons in management of the TPP
• Professional Indemnity Insurance or Equivalent
All TPPS
AISPs & PISPs
• Process to track and restrict access to sensitive payments data
• Principles on Collection of Statistical Data on Performance,
Transactions & Fraud
• Internal Control mechanisms for AML/CFT
• Identity & Suitability Assessment of persons with Qualified
Holdings in Applicant
• Identity of Statutory Auditors and Audit Firms
Additional for PISPs
TPP: Trusted Third Party / regulated FinTech
AISP: Account Information Service Provider
PISP: Payment Initiation Service Provider
Definitions
Open Banking
Copyright BIAN 2020 | Banking Industry Architecture Network
PSD2 – EU & the UK
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• ECB, EBA, FCA (UK), CMA (UK)
• Open Banking, The Berlin Group,
STET, etc…
• ISO20022
Regulators
Standards Bodies
• Banking
Sectors
• Account Information Services:
Accounts, balances, transactions
• Payment Initiation Services:
Domestic, International, Bulk,
Standing Orders
• Card Based Payment Services :
Balance check
Products
• Banks: Offering Cash accounts
with Outgoing Payments
• TPPs: AISPs & PISP - FinTechs
regulated by the NCAs
Participants
• SCA (Multi-factor)
• OIDC & FAPI Compliant (+CIBA?)
• Customer Consent (GDPR)
Security
Consent
The Second Payment Services Directive – Open BankingRegulatory – Mandated
2016 – 2020, Live
Copyright BIAN 2020 | Banking Industry Architecture Network
Consumer Data Right (CDR) - Australia
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• Australian Competition &
Consumer Commission (ACCC)
• Data 61 – API Implementation
Regulators
Standards Bodies
• Banking, Energy, Telecom, Others
Sectors
• Phase 1: Current, Savings, Call
Accounts, Cards, Term Deposits
• Phase 2: Loans, Mortgages
• Phase 3 : FX, Business & Asset
Finance, Farm Accounts, Retirement
Accounts, Trust Accounts
Products
• Data Holders: Banks offering any
Phase 1,2,3 Product, classified into
Initial ADIs (Big 4), Accredited ADI,
Voluntary participating ADI, Any Other
Relevant etc.
• Data Recipients: Regulated FinTechs
Participants
• SCA (Multi-factor)
• OIDC & FAPI Compliant (CIBA?)
• Customer Consent (CDR)
Security
Consent
Regulatory – Mandated
2017 – 2022, Ongoing
Open Banking to Open Finance
Copyright BIAN 2020 | Banking Industry Architecture Network
CDR – Australia – Products
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• home loan (residential & investment property)
• mortgage offset accounts
• personal loan
Phase 2
Regulatory – Mandated
2017 – 2022, Ongoing
• savings accounts
• call accounts
• term deposits
• current accounts
• cheque accounts
• debit card accounts
• transaction accounts
• personal basic accounts
• GST and tax accounts
• credit and charge cards (personal)
• credit and charge cards (business)
Phase 1
• business finance
• loan for an investment
• lines of credit (personal)
• lines of credit (business)
• overdrafts (personal)
• overdrafts (business)
• asset finance (including leases)
• cash management accounts
• farm management accounts
• pensioner deeming accounts
• retirement savings accounts
• trust accounts
• foreign currency accounts
• consumer leases
Phase 3
Open Banking to Open Finance
Copyright BIAN 2020 | Banking Industry Architecture Network
Consumer Directed Finance – Canada
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• Department of Finance, Canada
• Department of Innovation, Science
and Economic Development?
Regulators
• Banking
Sectors
• Cash, Savings, Cards, Call etc. Accounts?
• Term Deposits?
• Investment Accounts
• Payments Initiation? May be
• Digital ID DoB, SSN, Driver’s license,
health cards, biometric etc.
Products
• Federally Regulated Financial
Institutions
Participants
• SCA (Multi-factor)
• OIDC & FAPI Compliant (CIBA?)
• Customer Consent
• Dispute Resolution
Security
Consent
Open Banking to Open FinanceRegulatory – Mandated
In Consultation
Copyright BIAN 2020 | Banking Industry Architecture Network
Open Banking Brasil
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Open Banking to Open Finance
Copyright BIAN 2020 | Banking Industry Architecture Network
Open Banking Brasil
19
• Banco Central Do Brasil (Central Bank of
Brazil)
Regulators
• Banking
• Might be extended in the future
Sectors
• Data on products and services (location of branches
and other access channels, product characteristics,
contractual terms and conditions, financial costs, among
others)
• customer personal data (name, filiation, address,
among others)
• customer transactional data (data related to deposit
accounts, credit operations and other products and
services contracted by customers, among others)
• payment services (initialization of payments, transfers
of funds, payments of products and services, among
others)
Products
• Financial institutions
• Payment institutions
• Other institutions licensed by the Central Bank of Brazil
• Initially Required for S1 & S2 Banks only
Participants
• SCA (Multi-factor)?
• OIDC & FAPI Compliant (CIBA?)
• Customer Consent
Security
Consent
Open Banking to Open FinanceRegulatory – Mandated
2019 – 2021, Ongoing
Watch the Space..
Beyond
Phase IV
Expansion of the scope of covered data
• foreign exchange operations
• investments,
• Insurance
• open pension funds,
• Etc…
October 2021
Phase III
Sharing of services
• Initiating payment transactions
• Forwarding loan proposals
August 2021
Phase II
Sharing of
• customers’ or their representatives’ registry information
• the customers’ transactional data related to products and services listed in Phase I
May 2021
Phase I
Public access to information from participating institutions regarding their customer service channels and their products and services related to:
• demand deposit
• savings accounts,
• payment accounts
• credit operations
November 2020
Open Banking Brasil – Regulatory Roadmap
• Initially Required for S1 & S2 Banks only20
Copyright BIAN 2020 | Banking Industry Architecture Network
APIX Innovation Lab – ASEAN
21
• Monetary Authority of Singapore (MAS)
• International Finance Corporation (World
Bank Group)
• ASEAN Bankers Association
• Association of Banks in Singapore (ABS)
Standards Bodies
• Banking
Sectors
1. All Banking Products
2. Innovative solutions with FinTech
products beyond banking
3. ABS – MAS: Finance-as-a-service
API Playbook
Products
• Financial Institutions & FinTechs
participating in the APIX API
Marketplace
Participants
• API Level Security – tokens, and
as mandated by publisher
• SCA?
Security
Consent
Regulatory – Encouraged
Live
Open Banking to Open Finance
Copyright BIAN 2020 | Banking Industry Architecture Network
Open Banking – USA
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• Financial Data Exchange (FDX) – Detailed
APIs
• NACHA (AFINs Interoperability Standards)
• Consumer Financial Protection Bureau
• Banking Industry Architecture Network BIAN
Standards Bodies
• Banking
Sectors
• BIAN: All Banking Products across all LoBs –
Retail, Corporate, Investment, Wealth etc.
• FDX: Accounts & Transactions - Deposit,
Investment, Loan, Loc, Annuity, Insurance; Internal
Bank Transfers, Tax Forms
• NACHA (AFINS): Account Validation, Bank Contact
Information, ACH Payment Initiation, Transaction
Status, B2B Interoperability (Coming soon)
Products
• Financial Institutions & FinTechs
implementing the FDX and BIAN standards
• Voluntary
Participants
• SCA (Multi-factor) ?
• OIDC & FAPI Compliant (CIBA?)
• Customer Consent ?
Security
Consent
Market Driven
Ongoing
Ideas
External
Technologies
Market
Other Industry
Markets
Open Banking to Open Finance
Copyright BIAN 2020 | Banking Industry Architecture Network
Open Banking – China
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• No Regulatory involvement
• Banks FinTechs have agreed mutual APIs
/ interfaces
Standards Bodies
• Banking, Insurance
Sectors
1. Bank Information
2. consumer and business accounts
3. Lending
4. Payments and settlement
5. Investment and wealth management
6. Foreign currency exchange
7. Rewards
8. More ..
Products
• Large Banks
• FinTechs with ”Super Apps”
• Small banks leverage “Super Apps”
• Voluntary
Participants
• SCA (Multi-factor) ?
Security
Consent
Market Driven
Ongoing
* Number of Customers
Open Banking to Open Finance
Alipay 400mn* WeChat 600mn*
SPD Bank
• 400+ API endpoints
• 200+ Business Partners
• 3.3mn API calls /day
Source:
Copyright BIAN 2020 | Banking Industry Architecture Network
Open Finance - UK
24
• The Financial Conduct Authority, UK
• HM Treasury?
• Government Digital Service?
• Department for Digital, Culture, Media
& Sport ?
Regulators
Standards Bodies
• Banking, Insurance
Sectors
• Read: Various financial products &
transactions: Savings, Mortgages,
Consumer Credit, Investments,
Pensions, Insurance etc.
• Write: Initiate transactions on the
customer’s behalf: payments,
account switches, investments, credit
applications etc.
• Digital Identities?
Products
• Banks: Offering Cash accounts with
Outgoing Payments
• TPPs: AISPs & PISP - FinTechs
regulated by the FCA
• Insurers?
Participants
• SCA (Multi-factor)
• OIDC & FAPI Compliant (+CIBA?)
• Customer Consent (GDPR)
Security
Consent
Open Banking to Open Finance Regulatory – Mandated
In Consultation
Copyright BIAN 2020 | Banking Industry Architecture Network
A DEEPER LOOK
Regulatory – Mandated: PSD2 / Open Banking UK
Regulatory – Encouraged: ASEAN Financial Innovation Network (AFIN)
Market Driven: FDX – BIAN, USA
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Copyright BIAN 2020 | Banking Industry Architecture Network
The PSD2 | Open Banking UK Standards
26
Regulatory – Mandated
Copyright BIAN 2020 | Banking Industry Architecture Network
PSD2 | CDR – Banking Product, Transaction & Consumer Data Sharing
TPP
Data recipient
Consumer
eBanking
Online & mobile
APIs
1. Request banking product,
transaction & customer Data
3. Authenticate2. Setup account access consent
5. Request data4. Authorise Consent
Bank
ASPSP / Data Holder
PSD2 | CDR
TPP / Data Recipient: Third Party Provider / regulated
FinTechASPSP / Data Holder: Bank / ADI – Accredited Deposit Taking Institution
Definitions
27
Regulatory – Mandated
Copyright BIAN 2020 | Banking Industry Architecture Network
PSD2 – Payment Initiation
TPP
Consumer
eBanking
Online & mobile
APIs
1. Agree Payment Order Initiation
3. Authenticate
4. Authorise Consent
Bank / ASPSP
PSD2
TPP / PISP : Third Party Provider / regulated FinTechASPSP : Bank
Definitions
2. Setup Payment Order Consent
4. Confirm Funds
5. Create Payment-Order
6. Get Payment-Order / Consent Status
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Regulatory – Mandated
Copyright BIAN 2020 | Banking Industry Architecture Network
PSD2 – AIS Journey
29
Regulatory – Mandated
FinTech Bank FinTech
Copyright BIAN 2020 | Banking Industry Architecture Network
PSD2 – PIS Journey
30
Regulatory – Mandated
FinTech FinTechBank
Copyright BIAN 2020 | Banking Industry Architecture Network
PSD2 | CMA | Open Banking UK Highlights
31
Regulatory – Mandated
Copyright BIAN 2020 | Banking Industry Architecture Network
Request to Pay
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Copyright BIAN 2020 | Banking Industry Architecture Network
RTP – High level architecture
EAP: ShopEAP: Payer’s
ApplicationBiller’s RSP Payer’s RSP
Biller’s BankPayer’s Bank
PSD2
or
Bank as RSP
PSD2
or
Bank as RSP
Seller Buyer
Bank Transfer
Card
Cash
Request to Pay
SEPA Instant Credit
EAP: End user Application Provider
RSP: Repository Service Provider
Definitions
33
Copyright BIAN 2020 | Banking Industry Architecture Network
APIX Innovation Lab – ASEAN
34
Open BankingRegulatory – Encouraged
Live
• Build market credibility
• Connect with qualified clients
• Minimize the time and cost to develop prototypes
and PoCs on our secure platform
• Raise your visibility with investors
• Protect your IP; ensure regulatory compliance
FinTechs
• Work with credible FinTechs on our secure platform
• Create successful prototypes in days on our secure
platform
• Harness the knowledge of the community
• Raise your visibility with investors
• Protect your IP; ensure regulatory compliance
Financial Institutions294* 51*
*Data as of June 23, 2020; Source: https://apixplatform.com/landing
Copyright BIAN 2020 | Banking Industry Architecture Network
ASPSP (Bank)Trusted FinTechConsumer
Certificate
The BIAN FDX JPMC Collaboration – Use Case
Open Banking Register
• Consent based Account Data (Cash, Term deposits,
Loan, Investments etc.) sharing based on the FDX
API specifications
• Using Next Gen Core Banking provider
Use Case
• A universal directory linking Banks, FinTechs, TPPs
covering Open Banking directories
• Identity & Access Management model using BIAN SDs
• Bank, FinTech? and Directory? components to be
modelled using BIAN Service Domains
Features
Market Driven
Ongoing
35
Copyright BIAN 2020 | Banking Industry Architecture Network
China – Use Case
Market Driven
Ongoing
Source:36
Market Driven
Ongoing
Copyright BIAN 2020 | Banking Industry Architecture Network
A MARKET DRIVEN STANDARD – BIAN
Open Standards
Value Proposition
Service Landscape
BIAN Artefacts
Business Capability Models
Developer Portal
37
Copyright BIAN 2020 | Banking Industry Architecture Network
Q. Open Standards in Banking?
A. BIAN
Ideas
Alternative
Market
External
Technologies
Market
Other Industry
Markets
Ideas
Alternative
Market
External
Technologies
Market
Other Industry
Markets
Monolith
Closed Innovation
Bank BIAN
Microservices
External BIAN
Microservices
Open Innovation
38
Copyright BIAN 2020 | Banking Industry Architecture Network
I
IT Strategy• Standards based
• Best of breed
• Rationalization
Organizational Drivers• Platform Economy
• Agile Banking
• Customer Intimacy
• OPEX
Technical Drivers• FinTech Integration
• Plug & Play
• Data Driven AI
• Non-overlapping SL
Business Drivers• New Revenue Streams
• Customer Satisfaction
• Cost Leadership
• Compliance
Value Proposition
39
Copyright BIAN 2020 | Banking Industry Architecture Network
Above the Glass
Below the Glass
Experiences RegulationEcosystems
Processes ControlOperations
Regulation
B2B/B2C
A2A
B2B/B2C+
40
Copyright BIAN 2020 | Banking Industry Architecture Network
Finance & Risk Management
Operations Products
Business Development
Customers Channels
Financial Control
Group Treasury
Credit Risk
Regulatiory ComplianceMarket Risk
Operational Risk
Solution Devel.
Marketing & Development
Product Management
Channel Management
Models & Analytics
Financial Statements
Financial Control
Financial Compliance
Enterprise Tax Admin
Approved Supplier Directory
Company Billing & PaymentsCorporate Treasury Analysis
Corporate Treasury
Asset Securitization
Bank Portfolio Analysis
Bank Portfolio Admin
Guideline Compliance
Regulatory Compliance
Compliance Reporting
Gap Analysis
Credit/Margin Management
Production Risk Models
Operational Risk Models
Economic Capital
Business Risk Models
Regulatory & Legal Authority
Regulatory ReportingCredit Management
Limit & Exposure Mgmt
Position Management
Counterparty Risk
Fraud/AML Resolution
Market Research
Customer Portfolio
Segment Direction
Market Analysis
Competitor AnalysisProduct Portfolio
Branch Portfolio
Channel Portfolio
Market Risk Models
Liquidity Risk Models
Systems Administration
IT Stds & Guidelines
Development Environment
System Development
Production Release
Fin Inst.Valuation Models
Contribution Analysis
Resource Management
Business Direction
IP & Knowledge
Unit Management
Business Unit Fin Analysis
Business Unit Financial Ops
Business Unit Accounting
Business Unit Direction
Business Unit Management
Buildings & Equipment
Site Operations
Site Administration
Equipment Administration
Equipment Maintenance
Utilities Administration
Building Maintenance
Procurement
Fixed Asset Register
Platform Operations
System Deployment
Systems Operations
Platform Operations
Systems Help Desk
Systems Assurance Internal Network Operation
Human Resources
Employee Assignment
Employee Data Mgmt
Empl/Contractor Contract
Employee Certification
Employee Evaluation
Empl Payroll & Incentives
Travel & Expenses
Employee Access
Employee Benefits
Workforce Training
Recruitment
Business Direction
Corporate Relations
Corporate Services
Organizational Direction
Property Portfolio
Internal Audit
Legal Compliance
Asset & Liability Mgmt
IT Systems Direction
HR Direction
Corporate Strategy
Corporate Policies
Product & Service Direction
Continuity Planning
Corporate Communications
Corp Alliance/Stakeholder
Corporate Relationship
Investor Relations
Security Advisory
Security Assurance
Credit Risk Models
Customer Behavior Models
Fraud Models
Business Architecture
Management Manual
Intellectual Property Port
Knowledge Exchange
Contribution Models Trading Models
Channel Activity Analysis
Financial Message Analysis
Central Cash Handling
Business Development
Brand Management
Advertising
Promotional Events
Prospect Campaign Mgmt
Prospect Campaign Design
Customer Campaign Mgmt
Customer Campaign Design
Customer Surveys
Case Root Cause Analysis
Sales Planning
Contact Center Management
Product Inventory Item Mgmt
Branch Network Mgmt
E-Branch Management
Advanced Voice Svs Mgmt
ATM Network Mgmt
Branch Currency Mgmt
Product Design
Product Deployment
Product Training
Product Quality Assurance
Information Provider Admin
Servicing Activity Analysis
Branch Location Mgmt
Quant Model
Market Data Switch Adm
Product Directory
External Agency
Commission AgreementSyndicate Management
Sub Custodian Agreement
Product Broker Agreement
Product Service Agency Contractor/Supplier Agmt
Corresp Bank Rel Mgmt
Interbank Relationship Mgmt
Custody, Collateral & Documents
Document Services
Archive Services
Custody Administration
Collateral Allocation Mgnt
Collateral Allocation Admin
Collections
Account Recovery
Accounting Services
Financial Accounting
Customer Tax HandlingPosition Keeping
Accounts Receivable
Account Reconciliation
Fraud Detection
Reward Points Account
CommissionsCustomer Position
Clearing & Settlement (Payments)
Order Allocation
Settlement Obligation Mgmt.
Payments Execution
Transaction Engine
Correspondent Bank
Cheque Processing
Corresp.Bank Data Mgmt
Payment OrderCounterparty Administration
ACH Fulfillment
Card Financial Settlement
Card ClearingCard eCommerce
Corporate Banking
Corporate Trust Services
Credit Facility
Cash Mgmt & Account Svs
Cheque Lock Box
Factoring
Direct Debit Mandate
Direct Debit
Project Finance
Corporate Current Account
Trade BankingLetter of Credit
Bank Guarantee
Trade Finance
Bank Drafts & Trvl. Checks
Market Operations Market Trading
Stock Lending/Repos
Securities Fails Processing
Trade/Price Reporting Corporate Events
Financial Inst ValuationSecurities Dlvry & Rcpt Mgmt
Trade Confirmation Matching
Trading Book Oversight
Dealer Workbench
Market Making
Program Trading
Traded Position Mgmt
Market Order
Quote Management
Suitbility Checking
Credit Risk Operations
Market Order Execution
Advisory ServicesInvestment Products
Corporate Finance
M&A Advisory Corporate Tax Advisory
Public Offering
Private Placement
Mutual Fund Administration
Hedge Fund Administration
Unit Trust AdministrationECM/DCM
Consumer Advisory Services
Consumer Banking
Currency Exchange
Payment InitiationBrokered Product
Current Account
Sales Product
Trust Services
Service Product
Investment Svs
Investment Portfolio Planning
Investment Portfolio Analysis
Investment Portfolio Mgmt
eTrading Workbench
Consumer Investments
Customer Orders
Customer Case Mgmt
Customer Case
Card Case
Customer/Servicing Order
Party ReferenceParty Data Management
Location Data Management
Custmer Ref Data Mgmt
Relationship MgmtCustomer Relationship Mgmt
Cust Prod./Service Eligibility
Customer Agreement
Customer Event History
Customer Behavioral Insights
Customer Credit Rating
Sales Product Agreement
Customer Precedents
Customer Proposition
SalesCust Campaign Execution
Party Lifecycle Management
Product Matching
Customer Offer
Product Expert Sales Support
Lead/Opportunity Mgmt
Product Sales Support
Spec/Discount Pricing Conds
Prospect Campaign Exec
Distribution
CorrespondenceBranch Currency Distribution
Product Inventory Distribution
Servicing
Servicing Issue
Contact Center Operations
Point of Service
Interactive Help
Servicing Event History
Informtn. Providers
Information Provider Ops
Market Information Mgmt
Financial Market Analysis
Financial Market Research
Market Data Switch Ops
Financial Instr Ref Data Mgmt
Public Reference Data Mgmt
Cross Channel
Channel Activity History
Customer Profile
Contact Routing
Contact Dialogue
Party Authentication
Transaction Authorization
Customer Access Entitlement
Contact Handler
Customer Workbench
Channel Specific
Financial Gateway
Branch Location Operations
E-Branch Operations
Advanced Voice Svs Ops
ATM Network Operations
Card Terminal Operation
Card Terminal
CardsCredit/Charge Card
Card Authorization
Card Capture
Merchant Relations
Card Billing & Payments Merchant Acquiring
Card Network Participant
Loans & Deposits
Deposit Account
Loan
Leasing
Syndicated Loan
Leasing Item Administration
Underwriting
Corporate Lease
Consumer Loan
Merchandising Loan
Fiduciary Agreement Savings Account
Mortgage
Corporate Deposits
Operational Services
Issued Device AdminDunning
Open Item Management
Disbursement Rwd Points Awards & Red.
Customer Billing
Issued Device Tracking
Product Combination
Card Transaction SwitchDelinquent Account
Card Collections
BIAN Service Landscape v8.0 and API Coverage
41
Copyright BIAN 2020 | Banking Industry Architecture Network
BIAN Artefacts
42
2 - Business ScenariosDefine business context for API access
1 - WireframeScope Service Domains & External
Boundaries
3 - SD Extension TemplatesAdd definition to Service Domains’ services,
events and information
4 - Data ModelDefine business terms (map to available
data standards)6 - Message Mapping
(background)Map to any available message
standards
5 – BIAN API Specification
ISO20022 &
OMG/FIBO
(Augmented)
Copyright BIAN 2020 | Banking Industry Architecture Network
Business Capability Models & Service Domains
Possible usage:
With the connected model it is possible
to indicate several aspects, e.g.
• Degree of digitalization of the
capabilities
• Degree of change flexibility
• Degree of API readiness
• Cost
• Technology Risk
• IT Complexity
• Level of Legacy
Investment advice
Investment ordering
Discretionary portfolio
management
Position keeping
& Asset servicing
Brokerage
Clearing
Custody
Business Capabilities
Investment advice
Management
Investment ordering
Management
Investments portfolio
management
Investment execution
Investment Brokerage
Settlement Processing
Custody management
Investment product
management
Investments position
management
Agency administration
Securities transfer
management
Investments operation
contract
Investment Reporting
Investments data
interfaces
Service Domains
Se
rvic
es, A
PI’s, A
pps
43
Copyright BIAN 2020 | Banking Industry Architecture Network
143 Service Domain MS APIs
16 API’s with ISO Mapping
>1250 Business Capabilities
>2500 Unique Business Components
Version 2.0 Free to Members and Non-Members
Swagger and Microservice Source Code Included
Open Source Contribution Model
Available at Portal.BIAN.ORG
Next Target: 170, Q4 202044
Copyright BIAN 2020 | Banking Industry Architecture Network
TO OPEN FINANCE
ILLUSTRATIVE BUSINESS SCENARIOS
Corporate Customer Onboarding
Mortgage Underwriting
Customer Upgrade – Product Upsell / Retail to Wealth
45
B
FT
AI
BIAN Service Domains
AI Models
FinTechs
Copyright BIAN 2020 | Banking Industry Architecture Network
To Open Finance
46
Bank 1
Bank 2
Current
Mortgages
Savings
Loans
Jane
CDR AI
FinTech
Customer
Onboarding
Mortgage
Underwriting
Customer
Upgrade
…
Copyright BIAN 2020 | Banking Industry Architecture Network
Use-Case1 : Corporate Customer Onboarding
Validate
Submitted
Documents
Customer Due
Diligence
Register
Party
Credit
Process
Legal
Contract
Contact DialogueParty Lifecycle Management
Document ServicesParty Data
ManagementCustomer Credit
RatingLegal Compliance
Execute,
Analyse,
Complete
Onboarding
Request
Retrieve
Corporate
Customer
Details
•Smart Analytics
•Document Processing •Credit Analytics
Party Lifecycle
ManagementB
FT
AI
• KYC & KYB
• Related parties &
associated officers
• PEP, Global Sanctions list
• AML
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OpenFinance?
Copyright BIAN 2020 | Banking Industry Architecture Network
Use Case 2: Mortgage Underwriting – Part 1
Get/Review
Customer
Credit Score
Get Mortgage
Lending Risk
Model
Review &
Add
Conditions
Conduct Regulatory
Compliance
Checks
UnderwritingCustomer
Position
Customer Credit
Rating
Collateral Asset
Administration
Credit Risk
Models
Regulatory
Compliance
Get Overall
Customer
Position
Get
Collateral
Risk
•Smart Analytics•Credit Risk•Collateral Risk
CDR Aggregator
B
FT
AI
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Copyright BIAN 2020 | Banking Industry Architecture Network
Use Case 2: Mortgage Underwriting – Part 2
B
FT
AI
Adjust Offer
(if required) Approve
LoanConduct
Underwriting
Audit
Verify against
Fraud Alert
Rules, Models
& Scanners
Verify Correct
Execution of the
Mortgage Loan
Process
Review
Conditions
Second
Review
UnderwritingFraud DetectionGuideline
ComplianceInternal AuditUnderwriting Underwriting Underwriting
•Outlier Detection
•Document Processing
•Document Processing
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Copyright BIAN 2020 | Banking Industry Architecture Network
Use Case 3: Customer Upgrade – Product Upsell / Retail to Wealth – Part 1
Retrieve
Customer
History
Conduct
Periodic
Customer
Analysis
Update
Customer
History
Get Current
Products & Services
Update Eligibility for
Additional Products
& Services
Customer Relation Management
Party Lifecycle Management
Customer Behavioral Insights
Customer Event History
Party Data Management
Verify Bank
Customer
Determine
Customer
Qualification
Customer Product Service Eligibility
Update
Customer
KYC
Party Data Management
•Smart Analytics•Transaction Analytics
CDR
Aggregator
•Product Recommendation
B
FT
AI
50
Copyright BIAN 2020 | Banking Industry Architecture Network
Use Case 3: Customer Upgrade – Product Upsell / Retail to Wealth – Part 2
51
Get Applicable
Products from
Other Banks
Create
Opportunity
Discuss Financial
Profile & Goals
with Customer
Information Provider Operation
Product MatchingLead &
Opportunity Mgmt
Prepare
Investment
Advice
Determine Next
Best Product to
Sell
Contact DialogueCustomer Relation
Management
•Next Best Action•Product
Recommendation
B
FT
AI
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Copyright BIAN 2020 | Banking Industry Architecture Network
More on BIAN
June 2020, Hans Tesselaar
Copyright BIAN 2020 | Banking Industry Architecture Network
Freemium
BIAN’s Internal Wiki and Official Homepage
53 Copyright BIAN 2020 | Banking Industry Architecture Network
Copyright BIAN 2020 | Banking Industry Architecture Network
2020 - Planned BIAN Open Webinar
54
Complimentary BIAN Webinar:
Introduction to the BIAN Landscape and some testimonials of BIAN implementations
Open Banking is a hot topic for financial
institutions all over the world. The ultimate
objective is to exchange financial information
and information services between players in this
fast changing eco system.
BIAN, the Banking Industry Architecture
Network, provides an Open Banking Reference
Architecture and framework that can leverage
and speed up standardization of semantic Open
July
1
4pm - 5pm (CEST)
10am - 11am (EDT)
Can´t make it on July 1?
Webinar explaining PoC on
Coreless Banking
July 14th 4pm – 5pm (CEST)
10am – 11am (EDT)
Webinar on BIAN API Usage at
a US Bank
July 28th 4pm – 5pm (CEST)
10am – 11am (EDT)
Copyright BIAN 2020 | Banking Industry Architecture Network
▪ Fees (annual membership)
▪ Software / Tech vendors / Integrators
(250 employees or more)
▪ EUR 30.000,-
▪ Banks / FI’s that are not vendors
▪ EUR 20.000,-
▪ Software / Tech vendors / Integrators
(less than 250 employees)
▪ EUR 10.000,-
▪ Federal Banks / Central Banks
▪ EUR 10.000,-
▪ Software / Tech vendors / Integrators
(less than 50 employees)
▪ EUR 5.000,-
▪ Academic Partners
▪ EUR 0,-
Member driven organization
55
Copyright BIAN 2020 | Banking Industry Architecture Network56
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