Open Banking platform is a Europe-based standard that lets third party developers build applications and services that tap into a bank’s core services and infrastructure.
For example, one can build a billing or ticket booking or payment service that can then ‘talk’ to the bank’s IT infrastructure using a set of pre-defined protocols (APIs). While this will force banks to open up, it will also increase the reach of their services.
“It will create new forms of distribution channels and servicing capabilities, provide access to third-party application marketplaces, and comply with emerging regulatory norms through the standardization of APIs,” said Wipro about its offering in the area.
Open Banking has been gaining significant momentum across the globe, especially in the European banking industry – driven by changing regulatory mandates.
“Revised Directive on Payment Services (PSD2), is one such regulatory mandate that aims to standardize, integrate and improve payment efficiency in the European Union,” Wipro said.
Wipro expects a large number of banks and financial institutions to adopt Open Banking initiatives to conform with evolving banking regulations, meet customers’ digital expectations, and stay ahead in an increasingly competitive FinTech industry. “These are transforming the way banks approach products and distribution.”
India is further along on the road to interoperability and standardization thanks to the activities of the National Payment Corporation of India.
“The banking business landscape demands disruptive requirements such as having a single unified technology platform for all of a bank’s crowdsourcing interactions with its developers involved with building its technology platforms or even creating branch-less banking experiences through a 100 per cent online presence. These needs extend well beyond the capabilities of regular API management,” said Wipro, which supplies a lot of global banks with customized and standardized software.
“Wipro’s Open Banking API platform accelerates banks’ journey towards the establishment of an AP-enabled value ecosystem, and simplifies the onboarding and integration of FinTech Services. By enabling compliance with emerging Open Banking regulatory mandates such as PSD2, the platform helps organizations keep pace with banking industry trends.
“In addition to accelerated time-to-value, the platform equips banks with the ability to Create and manage an AP-enabled ecosystem through a single unified platform. The platform can engage an ecosystem of partners/developers to create new revenue streams and foster innovation.”
“With over 15,000 open APIs in existence already, an increasing number of organizations are realizing the true potential of an open API ecosystem. Open Banking is disrupting bank industry with new business models and an open innovation culture,” said Krishnakumar N Menon, Vice President – Service Transformation, Wipro Limited.
Wipro’s platform uses IBM’s API Connect to mange APIs.