Within the dynamic realm of financial technology, the concept of open banking is progressively revolutionising the landscape by facilitating enhanced banking experiences that are characterised by increased efficiency and convenience. The primary objective is to establish a more equitable and lucid platform for customers to engage with financial services. However, with this innovation comes the necessity for finding the right Open Banking Compliance Software Suite.
Factors to Consider Before Choosing the Open Banking Software Suite
An overwhelming number of factors must be considered when choosing an open banking compliance software suite. Here are the key aspects to consider upholding the agility, security, and compliance of your business.
Secure and Safe Payment Initiation
A solid open banking compliance suite must be a cloud-based SaaS solution that enables banks to engage with third parties who need access to customer accounts or data to initiate payments in a secure and open manner.
Customisable Open APIs
The optimal Open banking compliance software should offer dedicated API services through a full-stack Open Banking solution, allowing banks to manage business processes. It should expose all mandatory, conditional, and optional APIs and consistently monitor changes impacting the Open Banking regulatory environment to ensure future proof and stay competitive.
FAPI & RTS Compliance
To be considered good open banking compliance software, it is essential for the software to have certified financial-grade APIs (FAPI). These APIs should be specifically designed for Account Information Services (AIS), Payment Initiation Services (PIS), and Confirmation of Funds (COF) services.
The software should prioritise adherence to strict regulations while achieving interoperability in the payment ecosystem. Also, it must comply with Open Banking Regulatory Technical Standards (RTS) by enabling Strong Customer Authentication for accessing customer financial accounts.
Secure Access to Open Banking APIs
An appropriate open banking suite ought to foster authentication and authorization of Open API access via a dedicated identity server that complies with OAuth 2.0 and OIDC protocols.
Seamless TPP Onboarding
An ideal Open Banking suite must provide a dedicated developer portal to facilitate the smooth onboarding of Third-Party Providers (TPPs) within a secure Sandbox environment. The system should manage and cater to all onboarded TPPs and empower the bank to approve or reject new registration requests. Moreover, the onboarding process of TPPs should be frictionless and automated, effectively managing their identity and validation, enhancing both security and efficiency.
MIS Dashboard with Data Analytics
A MIS Dashboard with data analytics should be part of the effective Open banking suite for managing TPPs, PSU Consent, and reporting.
API Health Check
It is critical to feature centralised, real-time monitoring of the PSD2 API’s health status for pre-empting failures or significant issues. The open banking solution must also include robust incident management & reporting, fail point notification & recovery, along with log management to ensure smooth operations and quick response to any potential challenges within the system.
Complete Assistance and Support from Vendor
In the realm of open banking, the solution provider must be capable of offering extensive assistance from subject matter experts backed by thorough mastery of PSD2 Regulatory Technical Standards (RTS). They should be adept in navigating the regulatory environment and facilitate smooth implementation. Guidance of SMEs is fundamental for effectively carrying out an open banking approach.
Advanced Roles and Security Administration
An ideal open banking solution should include advanced roles and security administration features to ensure high-level account management and data protection.
Reduced Implementation & Maintenance Costs
Additionally, it must emphasise minimising the costs associated with implementation and maintenance, making it a more affordable banking alternative.
User Controller
An optimal open banking platform must be engineered to simplify user access control across diverse application modules.
Consent Management
Having an option to either authorize, revoke, or reject the obtained consents from Payment Service Users (PSUs) is a critical feature. With this level of authority, banks can ensure that their services continue to be compliant with the ever-changing open banking regulations by setting the terms of user consent.
Encryption
The Open Banking Platform needs to be built with a strong encryption mechanism that ensures security against potential cyber threats such database invasions, DDoS (distributed denial of service), and man-in-the-middle attacks.
Developer Portal & API Sandbox
An open banking solution must ideally include features like an integrated developer portal and an API sandbox to encourage third-party providers to build and develop Open APIs. This setup promotes innovation and enhances the capabilities of banking solutions to meet diverse user needs.
Tavas of Macro Global: Leading the Open Banking Compliance Suite Revolution
Seeking an all-inclusive solution to your open banking compliance needs in this digital age?
Macro Global’s Tavas is a comprehensive open banking compliance suite designed to align operations with legal norms and innovative banking practices. It adheres to FAPI (Financial Grade API) Compliance and PSD2 Regulatory Technical Standards (RTS), providing protection against potential regulatory breaches. Tavas offers features such as Identity and Access Management (IAM) with OAuth 2.0, OpenID Connect Standard Protocol, contingency mechanism, self-service developer portal, strong customer authentication and API health check, seamless change management, and strong encryption mechanism.
Tavas also provides regulatory reporting for financial institutions worldwide, offering a MIS Dashboard, Data Analytics, customisable reports, incident management, fail point notification, and log management. The platform is flexible and scalable, integrating with existing architecture, ensuring minimal disruption while maximizing compliance requirements. Tavas accommodates both multinational corporations and local startups, ensuring a personalized system for each client.
Tavas is the perfect partner for institutions seeking robust, reliable solutions in a rapidly evolving Open Banking Landscape. Its ability to foster compliance in an increasingly complex regulatory ecosystem sets it apart from competitors. Choose Tavas for the gold standards of Open Banking compliance while ensuring seamless and secure operations for your enterprise.
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