IBM’s Open Banking Platform Allows Banks To Create Blockchain Appsbr>
Tech giant IBM has announced a new software suite designed to enable low-risk innovation, regulatory compliance, and fast creation of next-generation apps, such as blockchain.
Dubbed Open Banking Platform, the solution is a software-as-a-service suite built on certain predefined industry standards that financial institutions can use to help accelerate their core-to-cloud journey. It is built on Kubernetes and guided by Banking Industry Architecture Network (BIAN), Information FrameWork (IFW), and other open banking standards.
The Open Banking Platform will enable banks to take an incremental approach to open banking, opening up their legacy systems and tapping into APIs. The platform will act as a microservices layer on top of banks’ existing environments to enable easy, plug-and-play integration. The platform will allow users to choose from a range of APIs to add capabilities to their apps, such as financial risk assessment, payments, artificial intelligence (AI) and blockchain.
IBM has also developed a PSD2 payment solution, which works with the Open Banking Platform, to help clients facilitate PSD2 standard-based payments from their core banking systems. PSD2 is an EU Directive administered by the European Commission (Directorate General Internal Market) to regulate payment services and payment service providers throughout the European Union (EU) and European Economic Area (EEA).
“The future of banking isn’t just about modernization or churning out apps. It’s about re-thinking banking models to create new approaches that are open, intelligent and agile,” said Tom Eck, CTO, industry platforms, IBM. “The IBM Open Banking Platform provides a risk-managed path to digital transformation, so you can achieve fast time to market and stay ahead of regulatory requirements.”