In recent years, a wide range of technologies (such as mobile devices, big data, Artificial Intelligence, APIs) have been deployed, enabling new, innovative financial services to provide customers with 7/24 hours of location-free, simple, and automated services. These changes have transformed consumer habits and enabled the technology providers (FinTech and BigTech companies) to appear in the financial sector. The entry of new players has brought along new business collaboration models: today, the cooperation between banks and FinTech companies has become a typical feature, whereby several service providers offer services coordinated at the IT systems level, to customers (eg online shopping, bond crediting).
The trend is clear. In the next 5 to 10 years to come, banks and other financial organizations should make all their services available to their customers and partners 7/24 hours automatically, via any electronic channel (eg Internet bank, mobile bank, APIs). This is the world of digital banking (open banking or digital banking).
This change, from an IT perspective, poses a huge challenge to most financial institutions. The current banking systems of financial institutions are typically unable to serve 7/24 hours because they run daily closing processes (eg interest calculation, settlement of accounts), during which time these systems are virtually unavailable to the outside world.
DigiTie is a 7/24-hour software that handles a wide range of electronic channels (eg mobile banking, APIs) and is able to provide the complex services provided by the basic banking system (eg account management and transaction management, lending, deposit management) even if basic banking systems are not available.
Self-contained, complex service is one of DigiTie's biggest benefits.
The majority of the software serving electronic channels is more likely to mediate between the clients/partners' software (eg mobile banking, webshop) and basic banking software, but has very limited potential for independent servicing in case of unavailability of the basic banking software (eg typically they provide only balance and account information). DigiTie is completely different. DigiTie can provide complex services 7/24 hours, such as handling overdrafts and instant payments (HCTInst/SCTInst). DigiTie can independently perform either a complete credit sales process. We can enable DigiTie to provide virtually any core banking services and to later synchronize with banking core systems to maintain consistency of background systems.
The DigiTie service concept is presented in the following figure.
DigiTie is able to provide direct electronic customer channels such as a mobile bank or an internet bank, but it can handle the standard interfaces (API) to provide orders and queries from financial institution partners.
DigiTie-supported services, like the MoonSol system, can be customized on demand: if, for example, a particular financial institution already has a well-established and customized Internet banking solution, DigiTie can be tailored to handle indirect electronic channels only.
Due to DigiTie's customization, it is possible to gradually open services to the outside world, so it’s a viable option for a credit institution to provide, in a first round, only the services made obligatory by the PSD2 directive No. 2366/2015 (coverage query, online credit transfer, account information query), which can be followed by a number of services, such as instant payment (HCTInst / SCTInst), or online lending.
Another advantage of flexible customization is that DigiTie can be unique or uniform on demand. Many of our partners prefer that the DigiTie solution they use be "off the shelf", that is a software solution used by other customers and therefore cheaper, while others are insisting on more expensive, but competitive customized product. DigiTie, like MoonSol, can combine these "common" and customized elements in a unique way.
DigiTie can be operated cost-effectively. According to the requirements of a financial institution, DigiTie can be installed locally, in the IT infrastructure of the particular financial institution, or DigiTie is available in centrally managed operation, as Software as a Service. In this latter case, the financial institution will have a separate DigiTie copy, but the operation will be managed by our company.
DigiTie PSD2 enables banks to be compliant with PSD2. DigiTie for PSD2 serves as a front-layer for banks to manage the requests of TPPs (Third Party Providers) from PSUs (Payment Service Users) 24/7/365 and to transfer the requests to core banking systems of ASPSPs (Account Servicing Payment Service Providers).
DigiTie helps banks to join the SEPA Instant Credit Transfer (SCTInst) scheme. Under SCTInst payment transactions are accomplished within seconds, making this payment method competitive with card payments.
While DigiTie PSD2 opens services necessary to be compliant with PSD2, DigiTie for Open Banking can open up additional services to join FinTech ecosystems.
2018/10/05 - Brochure (EN)
This paper gives an overview of the innovative front-end software DigiTie, developed by Online Business Technologies. DigiTie enables the clients and partners of financial institutions to access 7/24 hours any desired financial service, like PSD2 services, instant payment or credit and debit management etc, through electronic channels.