PSD2-Compliant Open Banking Platform Transforms European Financial Services

Overview

A leading European bank partnered with Tellestia to meet the stringent requirements of the PSD2 (Directive on Payment Services 2) regulation. The challenge required developing a robust open banking platform that complied with regulatory standards, ensured secure third-party integrations, and seamlessly fit into the bank's existing ecosystem. Through a tailored solution built on secure APIs, advanced consent management, and scalable architecture, Tellestia empowered the bank to future-proof its operations in the open banking era.

The Challenge

The PSD2 regulation demanded that financial institutions provide secure access to their services for certified Third Party Providers (TPPs). For this bank, compliance with PSD2 posed several challenges:

• Regulatory Compliance: The need to meet PSD2’s strict requirements, including verified third-party access to financial data and services.
• System Integration: Ensuring seamless compatibility with the bank’s existing infrastructure.
• Data Security: Addressing security concerns surrounding sensitive financial data.
• Scalability: Creating a platform capable of handling growing demands without compromising performance.
• Ease of Use: Delivering a user-friendly interface for both TPPs and internal stakeholders.

The Objective

The primary goal was to design and implement an open banking platform that would:

• Fully comply with PSD2 Regulatory Technical Standards (RTS).
• Provide secure, seamless, and verified access for TPPs.
• Protect sensitive data with strong security protocols and consent management.
• Integrate into the bank’s existing systems without disruption.
• Ensure scalability for future growth and demand.

The Solution

Tellestia crafted a tailored PSD2 compliance platform, addressing the bank’s unique needs through a multi-stage process:

• Comprehensive API Framework:
  • Identity and process checks through API authentication.
  • Secure, verified data access by Payment Service Users.
  • API aggregation for seamless data sharing and payment initiation.
  • Detailed API documentation and SDKs for TPP integration.
• User-friendly Interface:
  • Development of a user-friendly web interface for TPPs.
  • Creation of a secure API with centralized authentication management.
• Enhanced Security Protocols:
  • Implemented robust frameworks like QWACs and QSEALs.
  • Centralized authentication at the API management layer to simplify access control and minimize risk.
  • Ensured secure data flow with token-based authorization.
• Seamless Integration:
  • Integrated the solution with the bank’s existing systems, ensuring zero disruption.
  • Provided consent management tools to grant users control over their data access.
• Scalability and Documentation:
  • Designed a highly scalable platform to handle increased usage without downtime.
  • Delivered user manuals and SDKs for TPPs, ensuring a smooth onboarding process.

The Impact

The open banking platform delivered by Tellestia transformed the bank’s operations:

• Regulatory Success: Achieved PSD2 RTS certification, ensuring full compliance with regulatory standards.
• Data Security and Control: Implemented advanced consent management and SCA protocols to protect customer data.
• Streamlined User Experience: Provided TPPs with intuitive tools and clear navigation for efficient access.
• Seamless Operations: Integrated flawlessly with the bank’s systems, ensuring no disruptions.
• Future-Ready Platform: Scalable architecture enables the bank to accommodate growth while maintaining optimal performance.