The banking sector is continuously striving for innovation in an increasingly cut-throat market. Open banking sits at the forefront of these innovation efforts as it enables consumers to enjoy faster, cheaper and more personalised banking solutions. At Traderoot, we recognise the contribution that open banking is making to revolutionise and disrupt the financial sector.
What is Open Banking?
Open banking can be defined as the practice of enabling third-party organisations, such as payment service and financial service providers, open access to the data related to the account of a customer. This data includes customer banking information such as transactions, payment history and other financial information. Third-party organisations are able to access the data through the use of application programming interfaces (APIs). This information is used by third-party organisations to develop and design more advanced and personalised applications and services.
How Open Banking is Disrupting Financial Sector
The banking sector is rapidly evolving. This evolution is largely driven by changing customer expectations and behaviours. Open banking enables traditional banks to be more competitive with fintechs and disruptors. Through open banking, traditional banks can develop innovative technology that will enable a more personalised banking experience for a customer. Customers expect more convenience and flexible access to digital financial services. In order to stay relevant, banks need to expand their service offering, and open banking facilitates this.
“In order for incumbents to stay relevant, they need to expand their service offering, and open banking facilitates this,” says Traderoot Director, Daniel Templeman.
Incumbents are in constant competition with fintechs and disruptors. Open banking, however, provides them with the opportunity to develop new tech themselves instead of partnering with their competition.
Traderoot’s Solutions
Universal Issuing Platform – Core Account
The UIP-Core Account is being extended to allow account holders to grant access to trusted third parties by implementing consent authorisation together with trust.
The Traderoot UIP–Core Account is enhanced to provide access to its accounts as an Account Servicing Payment Service Provider (ASPSP) within the ecosystem for core accounts.
It allows access to its customer data file (CIF) to other TPPs via appropriate APIs.
Consent authorisation is the process whereby account holders grant a TPP the right to perform certain actions on their behalf. This information is called an intent.
The Traderoot UIP-Core Account’s Token Vault module will store the intent securely as a TEP mandate that is retrieved using an access token.
The Traderoot Issuing Portal, an orchestration layer between banking apps, core accounts and lenders, is a solution described as an AISP.
The Traderoot Issuing Portal combines with the Traderoot Credential Manager module to manage the execution of actions on the account. It uses OAuth 2.0, together with the access token provided by a TPPP and/or PISP, to access the intent that determines whether the action may proceed.
TRADEROOT UIP-CA EMPOWERS YOU TO:
- Tailor-make Core Account products
- Support the full range of products – credit, debit, prepaid, corporate, personal and loyalty cards
- Authorise transactions and maintain account balances
- Manage all account holder data
- Integrate with banks, CMSes and front-end systems
Payment Service Providers – Acquirer
The Traderoot PSP-Acquirer will be enhanced in Q1 22 to act as a Trusted Third Party (TPP), allowing it to access account information within other ASPSPs either directly or via AISP.
THE TRADEROOT PSP-ACQUIRER EMPOWERS YOU TO:
- Integrate payment processing across all channels
- Support high-volume acquisition and switching
- Perform rules-based routing and clearing
- Integrate with banks directly and easily
- Perform merchant settlement
- Perform reconciliation with banks and other players
- Reduce fraud and risk
If your financial institution is ready to take necessary steps towards providing your customers with a more personalised banking experience, the team at Traderoot is ready to assist. Contact the team at Traderoot today to get started by emailing us on sales@traderoot.com or learn more about our solutions here.