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Showing posts from August, 2017

Beyond PSD2 for a Better Open Banking Expereince

PSD2 is acting as a catalyst in the digital transformation happening in the Banking industry. While meeting the compliance requirements of PSD2, financial institutes are excited to make use of the new business models and opportunities opened by this laid foundation. More the customers and partners we can reach, more the business activities and more the revenue. Making the banking functions more accessible and reactive will be a key enabler to provide a seamless experience to these parties, including internal banking staff whom directly affects the business efficiency.
IAM plays a critical role in improving business accessibility without compromising the system boundaries. PSD2 mandates strong customer authentication(SCA), setting the bar high for user authenticity, while keeping few exemptions, not to bother payment services user(PSU) with SCA for every little transactions. While adhering to this policy will make an institute PSD2 complaint, if they can react fast to the fraud rates…

Regulatory Technical Standard (RTS) for PSD2 SCA in Plain Text

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Abbreviations Used with PSD2Payment Services Directive 2 -PSD2Regulatory Technical Standard(RTS)- A recommendation requested by PSD2 as a technical guideline to be compliant with PSD2 Strong Customer Authentication -SCAPayment Service User -PSUAccount Servicing Payment Service Provider (ASPSP) - the existing banksPayment Initiation Service Provider (PISP) - a third party entity or a bank itself that can initiate the payment process Account Information Service Provider (AISP) - a third party or a bank itself which can retrieve PSU's account information may be to show an aggregate view of all accounts. Payment Service Providers issuing card- based payment instruments (PSP) - payment service providers that existed in pre PSD2 era who are doing payments through card networks like VISA or Mastercard. Sometime this is also used to refer all PSPs including PISP and AISP.Common and Secure Communication (CSC) Third Party Payment Service Providers (TPP)Access to accounts - XS2A When addres…

The Role of IAM in Open Banking

This presentation discusses on PSD2 standards in detail with the PISP and AISP flows, the technologies involved around the standard and finally how it can be adopted for Sri Lankan financial market.