In June 2017 our company has started the development of a software-solution in cooperation with a Hungarian commercial bank, which solution is aimed to meet the most exciting challenge of the implementation of the 2366/2015 EU Directive (the PSD2 Directive), the establishment of Open APIs. This solution is capable of managing the queries for the availability of funds, queries for account information and the requests of payment initiations of FinTech companies in line with Article 65, 66 and 67 of the PSD2 Directive, and transmit these requests to core banking systems. The solution also includes mobile apps on Android and iOS platforms as a tool for strong client authentication (SCA). We develop the module according to the Open Banking Standard (https://www.openbanking.org.uk/), which is declared to be one of the best adaptation of PSD2. The solution uses state-of-art technology solutions and standards like TLS 1.2, X.509, OAuth 2.0, OpenID Connect 1.0, RESTFul and ISO 20022. The first phase of development is planned to be finished by January 2018, which includes the management of queries and requests with SCA. In the next phase we plan to develop functions handling exemptions from SCA.
During the development our main focus was to create a timeless solution, which is capable to service any future business requirements or technologies. On top of the basic queries mentioned above it is possible to orchestrate other services as well, and to augment the minimum level of service required by the PSD2 directive, the level of online access to accounts, instant settlement is also possible by taking advantage of the built-in account servicing functionality that is provided in core banking quality. Combining this function with the 24/7/365 availability makes the solution capable to adapt to the requirements of instant payment systems like SEPA ICT.
Our company presented the intermediate results of the developments in a workshop held on the 6th of October, 2017 in the Hotel Kempinski Corvinus, Budapest. The presentation of the event is available here.