bian webinar; bian’s coreless banking poc, explained...25% text + 75% image objective 1: comply...

BIAN Webinar;

BIAN’s Coreless Banking PoC, ExplainedJuly 14th, 2020

Copyright BIAN 2020 | Banking Industry Architecture Network

A Warm Welcome to YOU –Dialing in From all around the globe!


On Today’s Webinar

• Hans TesselaarBIAN Executive Director


Introduction | Mission

To provide the world with the best banking inter-

operability architecture. To be the banking

technology standard.

Central objectives for IT in the banking industry are

to lower the IT and operational costs of the bank

and help banks mitigate the risks associated with

technology innovation. To provide a trusted

roadmap for constant innovation.

By collaborating and sharing in an open way, the

best expertise across our global ecosystem of

leading banks, technology providers, FinTech

players, academics and consultants to define a

revolutionary banking technology framework that

standardizes and simplifies the overall banking

architecture.


Introduction | BIAN & Financial Institutions


Introduction | BIAN & Partners


Introduction | BIAN & Academic, Standard Bodies and Training Partners

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Carnegie Mellon Capstone Project on API Definitons

− Problems: No common realize services

available among Fl’s. Without bank backed

access, technology startups are interfacing

with user’s accounts with non-secure

methods, which increases risk to bank

clients and the banks.

− To provide a ubiquitous set of APIs that

would enable the innovation that clients

seek while retaining security, as well as the

telemetry around user activity for banks to

tailor and market new products

− To produce a set of ‘technology agnostic

APIs’ that can be consumed by members of

the BIAN community and external to it

BIAN Semantic API Working Group.

Deliverables

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▪ Objective 1: Comply with PSD2

The first goal of the project was to create a

working proof of concept for open APIs for

banking, in compliance with PSD2. PSD2 is a

financial regulation document that applies to

banks and financial institutions in the

European Union. This regulation was published

on January 13, 2016, and will go into effect for

banks on January 13, 2018.

▪ Objective 2: Demonstrate a solution built

on BIAN, IFX, and PNC

The second goal of the project was to use

principles from BIAN and IFX to build a

solution. This solution was built to interact

with PNC, but could be adapted to any bank.

Carnegie Mellon Capstone Project on Open API’s


Service Landscape – Initial Service Domain Classification

Considering possible external interactions (i.e. from the bank to a customer directly or via

a third party provider – B2C & B2B) the BIAN Service Landscape can be used to identify

Service Domains with external APIs…

Key: Product Service Domains that fulfill product specific activities

Utility Service Domains that fulfill cross-product activities

Initial Service Domain classification

for:

◆ ~70 Product Related Service Domains

e.g. Current Account, Deposits,

Collateral Allocation

◆ ~100 Utility/cross-product related

Service Domains e.g. Party

Authentication, Interactive Help

Selected Service Domains may offer

simple read access or may offer complex

array of services to cover external access

as appropriate


–11–

Public Private

Efficient and Innovative Change

New Business Models

Secure and Controlled

Scalable and Adaptable

Hybrid

Co

mp

lian

tP

latf

orm

sN

on

-C

om

plia

nt

Pla

tfo

rms

Platforms

Op

en A

PI P

rod

uct

s

Pay

Ind

ust

ry P

rod

uct

s

Bank Products/Experiences

oAuth

IFX

ISO20022

DDA

NACHA

Dig

ital

Exp

erie

nceMobile

Social

Voice

Messaging

Bots

IoT/IOE

AP

I Gat

eway

BIA

N S

D

SOSO

SO

BIA

N S

D

SOSO

BIA

N S

D

SOSO

Co

ntr

olle

rs

Services Fabric

Fintech

Ecosystems

IOE


Above the Glass

Below the Glass

Experiences RegulationEcosystems

Processes ControlOperations

Regulation

B2B/B2C

A2A

B2B/B2C+


143 Pre-Build API’s

25 API’s with Full ISO Mapping

>3000 Microservices Endpoints

>4000 Unique Data Components

Portal is Free to Members and Non-Members

Swagger and Microservice Source Code Included

Open Source Contribution Model

Register today at https://portal.bian.org


API Portal Usage

14

(since October 2018 launch)*

4,872 Total Users

Personal Email739

Uncategorized* *In Process. Manual effort184

587 Categorized

303 Bank

181 Software Provider

87 Services Provider

17 Other

North America, Europe, Middle East, Asia, Australia

182 Unique Companies

Standards Organization, Non-Profit, Other

13,018 GIT (Microservices)213 450

5,017 Swagger 129

*Data Through to 30th of June 2020, Rise since 1st of June 2020

89 Unique

87 Unique

68 Unique


Finance & Risk Management

Operations Products

Business Development

Customers Channels

Financial Control

Group Treasury

Credit Risk

Regulatiory ComplianceMarket Risk

Operational Risk

Solution Devel.

Marketing & Development

Product Management

Channel Management

Models & Analytics

Financial Statements

Financial Control

Financial Compliance

Enterprise Tax Admin

Approved Supplier Directory

Company Billing & PaymentsCorporate Treasury Analysis

Corporate Treasury

Asset Securitization

Bank Portfolio Analysis

Bank Portfolio Admin

Guideline Compliance

Regulatory Compliance

Compliance Reporting

Gap Analysis

Credit/Margin Management

Production Risk Models

Operational Risk Models

Economic Capital

Business Risk Models

Regulatory & Legal Authority

Regulatory ReportingCredit Management

Limit & Exposure Mgmt

Position Management

Counterparty Risk

Fraud/AML Resolution

Market Research

Customer Portfolio

Segment Direction

Market Analysis

Competitor AnalysisProduct Portfolio

Branch Portfolio

Channel Portfolio

Market Risk Models

Liquidity Risk Models

Systems Administration

IT Stds & Guidelines

Development Environment

System Development

Production Release

Fin Inst.Valuation Models

Contribution Analysis

Resource Management

Business Direction

IP & Knowledge

Unit Management

Business Unit Fin Analysis

Business Unit Financial Ops

Business Unit Accounting

Business Unit Direction

Business Unit Management

Buildings & Equipment

Site Operations

Site Administration

Equipment Administration

Equipment Maintenance

Utilities Administration

Building Maintenance

Procurement

Fixed Asset Register

Platform Operations

System Deployment

Systems Operations

Platform Operations

Systems Help Desk

Systems Assurance Internal Network Operation

Human Resources

Employee Assignment

Employee Data Mgmt

Empl/Contractor Contract

Employee Certification

Employee Evaluation

Empl Payroll & Incentives

Travel & Expenses

Employee Access

Employee Benefits

Workforce Training

Recruitment

Business Direction

Corporate Relations

Corporate Services

Organizational Direction

Property Portfolio

Internal Audit

Legal Compliance

Asset & Liability Mgmt

IT Systems Direction

HR Direction

Corporate Strategy

Corporate Policies

Product & Service Direction

Continuity Planning

Corporate Communications

Corp Alliance/Stakeholder

Corporate Relationship

Investor Relations

Security Advisory

Security Assurance

Credit Risk Models

Customer Behavior Models

Fraud Models

Business Architecture

Management Manual

Intellectual Property Port

Knowledge Exchange

Contribution Models Trading Models

Channel Activity Analysis

Financial Message Analysis

Central Cash Handling

Business Development

Brand Management

Advertising

Promotional Events

Prospect Campaign Mgmt

Prospect Campaign Design

Customer Campaign Mgmt

Customer Campaign Design

Customer Surveys

Case Root Cause Analysis

Sales Planning

Contact Center Management

Product Inventory Item Mgmt

Branch Network Mgmt

E-Branch Management

Advanced Voice Svs Mgmt

ATM Network Mgmt

Branch Currency Mgmt

Product Design

Product Deployment

Product Training

Product Quality Assurance

Information Provider Admin

Servicing Activity Analysis

Branch Location Mgmt

Quant Model

Market Data Switch Adm

Product Directory

External Agency

Commission AgreementSyndicate Management

Sub Custodian Agreement

Product Broker Agreement

Product Service Agency Contractor/Supplier Agmt

Corresp Bank Rel Mgmt

Interbank Relationship Mgmt

Custody, Collateral & Documents

Document Services

Archive Services

Custody Administration

Collateral Allocation Mgnt

Collateral Allocation Admin

Collections

Account Recovery

Accounting Services

Financial Accounting

Customer Tax HandlingPosition Keeping

Accounts Receivable

Account Reconciliation

Fraud Detection

Reward Points Account

CommissionsCustomer Position

Clearing & Settlement (Payments)

Order Allocation

Settlement Obligation Mgmt.

Payments Execution

Transaction Engine

Correspondent Bank

Cheque Processing

Corresp.Bank Data Mgmt

Payment OrderCounterparty Administration

ACH Fulfillment

Card Financial Settlement

Card ClearingCard eCommerce

Corporate Banking

Corporate Trust Services

Credit Facility

Cash Mgmt & Account Svs

Cheque Lock Box

Factoring

Direct Debit Mandate

Direct Debit

Project Finance

Corporate Current Account

Trade BankingLetter of Credit

Bank Guarantee

Trade Finance

Bank Drafts & Trvl. Checks

Market Operations Market Trading

Stock Lending/Repos

Securities Fails Processing

Trade/Price Reporting Corporate Events

Financial Inst ValuationSecurities Dlvry & Rcpt Mgmt

Trade Confirmation Matching

Trading Book Oversight

Dealer Workbench

Market Making

Program Trading

Traded Position Mgmt

Market Order

Quote Management

Suitbility Checking

Credit Risk Operations

Market Order Execution

Advisory ServicesInvestment Products

Corporate Finance

M&A Advisory Corporate Tax Advisory

Public Offering

Private Placement

Mutual Fund Administration

Hedge Fund Administration

Unit Trust AdministrationECM/DCM

Consumer Advisory Services

Consumer Banking

Currency Exchange

Payment InitiationBrokered Product

Current Account

Sales Product

Trust Services

Service Product

Investment Svs

Investment Portfolio Planning

Investment Portfolio Analysis

Investment Portfolio Mgmt

eTrading Workbench

Consumer Investments

Customer Orders

Customer Case Mgmt

Customer Case

Card Case

Customer/Servicing Order

Party Reference

Party Data Management

Location Data Management

Custmer Ref Data Mgmt

Relationship MgmtCustomer Relationship Mgmt

Cust Prod./Service Eligibility

Customer Agreement

Customer Event History

Customer Behavioral Insights

Customer Credit Rating

Sales Product Agreement

Customer Precedents

Customer Proposition

SalesCust Campaign Execution

Party Lifecycle Management

Product Matching

Customer Offer

Product Expert Sales Support

Lead/Opportunity Mgmt

Product Sales Support

Spec/Discount Pricing Conds

Prospect Campaign Exec

Distribution

CorrespondenceBranch Currency Distribution

Product Inventory Distribution

Servicing

Servicing Issue

Contact Center Operations

Point of Service

Interactive Help

Servicing Event History

Informtn. Providers

Information Provider Ops

Market Information Mgmt

Financial Market Analysis

Financial Market Research

Market Data Switch Ops

Financial Instr Ref Data Mgmt

Public Reference Data Mgmt

Cross Channel

Channel Activity History

Customer Profile

Contact Routing

Contact Dialogue

Party Authentication

Transaction Authorization

Customer Access Entitlement

Contact Handler

Customer Workbench

Channel Specific

Financial Gateway

Branch Location Operations

E-Branch Operations

Advanced Voice Svs Ops

ATM Network Operations

Card Terminal Operation

Card Terminal

CardsCredit/Charge Card

Card Authorization

Card Capture

Merchant Relations

Card Billing & Payments Merchant Acquiring

Card Network Participant

Loans & Deposits

Deposit Account

Loan

Leasing

Syndicated Loan

Leasing Item Administration

Underwriting

Corporate Lease

Consumer Loan

Merchandising Loan

Fiduciary Agreement Savings Account

Mortgage

Corporate Deposits

Operational Services

Issued Device AdminDunning

Open Item Management

Disbursement Rwd Points Awards & Red.

Customer Billing

Issued Device Tracking

Product Combination

Card Transaction SwitchDelinquent Account

Card Collections

BIAN Service Landscape v8.0 and API Coverage

V1 High Quality Mapped V1 Provisionally Mapped

Corporate Loan

Servicing Mandate

V2

Fraud Case

V3

V4 (+27) :

• Commercial Lending

• Fraud Management

• Investment & Trading

• Branch / Network

Management

• FDX Use case related

• Member requests


–16–

BIAN STRUCTURE

THE CURRENT DEFINITION OF GENERIC

INSTITUTION’S SERVICE DOMAINS AND

API…

1 Business Area

Reference Data

Sales & Service

Operations & Execution

Risk & Compliance

Business Support

Party

External Agency

Market Data

Product Management

Party Data Management

Customer Profile

2 Business Domain

3 Service Domain

API Layer (Update, Register, Request, Record, Retrieve)

Bank Consumable API Orchestration

Party Microservice

Ad

ap

tor A

dap

tor

Business Layer

Data Access Layer

Identified gaps

ILLUSTRATIVE

…REQUIRE ADDITIONAL ARCHITECTURE

TO BE FULLY OPERATIONAL AND BANK

CONSUMABLE

A

To increase adoption, additional

guidance, principles and patterns should

be provided by BIAN for the following:

Microservice | in addition to the service

operations:

▪ Business layer to implement business

logic

▪ Data access layer to implement access

to the microservice specific data store

▪ Adaptors to implement all cross cutting

concerns such as audit logging,

monitoring, etc

A

Business areas and

domains are example

business scenarios that

help organize the Service

Domains for ease of

reference

Service Operations

Data store

2

3

1

A PROOF OF CONCEPT

Microservices

API layer

Business layer

Data access layerAdapto

rs

Adapto

rs

Data store


Cross Domain Orchestration

Current State

Business Domain Centric

Fully complete and represent a single business capability

or sub-capability, business function or a business domain

Modular and componentized

Enable independent development, build, test, deploy,

scalability, flexibility and performance

API Driven - Contract Driven - Composable

Well-defined service contract name with standardized

input and output message format that are backwards

compatible

Sin

gle

dom

ain

UI

CURRENT STATE

Microservices

API layer

Business layer


rs

Adapto

rs

Data store



Required BIAN Product Architecture

Sin

gle

dom

ain

UI

BIAN PRODUCT


UI

BANK ORCHESTRATION

Required BIAN Bank Architecture

(Consumer Loan) (Customer Offer) (Party)

Bank consumable API interface

Bank consumable API interface to orchestrate (where

necessary) BIAN APIs and reduce network traffic /

isolate subtrips within container

Cloud native banking service

Cloud-native technologies deployable to the cloud in

order to take advantage of modern software

development techniques

Implement microservice

Implements the “stub” found in the Open API Exchange

Plug and play functionality

A BIAN product from one vendor is replaceable by

another product within a Bank with no impact to user

experience


Outer layer that offers an orchestration across domains

to reduce network traffic


A BIAN Product (the combination of Bank consumable

API, Open API Exchange and Microservice) from one

vendor is replaceable by another product within a Bank

with no impact to user experience

1 Potential customer submits

initial application information

for savings account

2 Check for existing customer

in MDM through Party

microservice

3 Retrieve product and

rate options based on

relationship and present

to applicant

4 Create / update customer

and create account

ILLUSTRATIVE HIGH LEVEL FLOW

1

234

ASK OF BANK

A PROOF OF CONCEPT

Microservices

API layer

Business layer


rs

Adapto

rs

Data store



Current State

Business Domain Centric

Fully complete and represent a single business capability

or sub-capability, business function or a business domain

Modular and componentized

Enable independent development, build, test, deploy,

scalability, flexibility and performance

API Driven - Contract Driven - Composable

Well-defined service contract name with standardized

input and output message format that are backwards

compatible

Sin

gle

dom

ain

UI

CURRENT STATE

Microservices

API layer

Business layer


rs

Adapto

rs

Data store



Required BIAN Product Architecture

Sin

gle

dom

ain

UI

BIAN PRODUCT


UI

BANK ORCHESTRATION

Required BIAN Bank Architecture

(Consumer Loan) (Customer Offer) (Party)

Bank consumable API interface

Bank consumable API interface to orchestrate (where

necessary) BIAN APIs and reduce network traffic /

isolate subtrips within container

Cloud native banking service

Cloud-native technologies deployable to the cloud in

order to take advantage of modern software

development techniques

Implement microservice

Implements the “stub” found in the Open API Exchange


A BIAN product from one vendor is replaceable by

another product within a Bank with no impact to user

experience


Outer layer that offers an orchestration across domains

to reduce network traffic


A BIAN Product (the combination of Bank consumable

API, Open API Exchange and Microservice) from one

vendor is replaceable by another product within a Bank

with no impact to user experience

1 Potential customer submits

initial application information

for savings account

2 Check for existing customer

in MDM through Party

microservice

3 Retrieve product and

rate options based on

relationship and present

to applicant

4 Create / update customer

and create account

ILLUSTRATIVE HIGH LEVEL FLOW

1

234

Present

Landing

Page and

Submit

Goals

Enter Party

Information

Submit

Checking /

Savings

Application

CUSTOMER SEES LIST

OF PRODUCTS AND

CHOOSE OPTIONS

CUSTOMER BEGINS

APPLICATION FOR

CHECKING / SAVINGS

CUSTOMER OPENS

CHECKING / SAVINGS

Obtain

Additional

Loan App

Information

Present

Pricing,

Submit Loan

Application

Present

Dashboard

CUSTOMER PROVIDES

LOAN AMOUNT,

PAYMENT PREFERENCE

CUSTOMER SUBMITS

LOAN APPLICATION

CUSTOMER SEES

DASHBOARD OF ACTIVE

ACCOUNTS / AMOUNT

RETRIEVE PRODUCT

LIST

UI

CR

OS

SD

OM

AIN

OR

CH

ES

TR

AT

ION

BA

NK

CO

NS

UM

AB

LE

AP

I

MIC

RO

SE

RV

ICE

AP

I

RETRIEVE PRODUCT

RETRIEVE PRODUCT

LIST1

CREATE PARTY

INFO

CREATE PARTY

CREATE NEW

PARTY1

CREATE ACCOUNT

CREATE CURRENT

CREATE SAVINGS

CREATE CURRENT1

CREATE SAVINGS1

RETRIEVE PRICING

RETRIEVE PRICING

RETRIEVE PRICING1

CREATE ACCOUNT

CREATE LOAN

CREATE LOAN1

RETRIEVE PARTY

AND ACCOUNT

(1) RETRIEVE PARTY

(2) RETRIEVE CURRENT

(2) RETRIEVE SAVINGS

(2) RETRIEVE LOAN

(1) RETRIEVE PARTY1

(2) RETRIEVE CURRENT1

(2) RETRIEVE SAVINGS1

(2) RETRIEVE LOAN1

BIA

N C

om

pli

an

t P

rod

uct

Ban

k

ILLUSTRATIVE

1Refer to your domain swagger for APIs

Coreless Banking- Proposed Journey: Onboarding

DEMO

https://bian-sibos-poc-ui.azurewebsites.net

https://bian-sibos-poc-ui.azurewebsites.net/

ILLUSTRATIVE HIGH LEVEL ECOSYSTEM

ILLUSTRATIVE HIGH-LEVEL ECOSYSTEM EXAMPLE PROCESS FLOW

Orchestration Layer

Rate

Vendor

Core Vendor

WBB Mobile IVR

Onboarding

Microservice

AML / KYC

Vendor

Account

Management

Microservice

Party

Microservice

Fraud

Vendors

Product

Master

Vendor

1 Potential customer submits initial application

information for savings account

Review applicant for fraud

Check for existing customer in MDM through

Party microservice

Retrieve product and rate options based on

relationship and present to applicant

Receive application submission with required

documentation

Validate applicant with AML / KYC vendor

Approve applicant, present disclosures; receive

e-signature

Create / update customer and create account

2

1

4

6

3

5

3

4

5

Document

Management

Microservice

6

VENDORS

8

8

8

8

Vendor

Bank

7

7

Product

Service

Rate

Service

AML

Service

Fraud

Service

2

GARTNER’S 4 CORE MODERNIZATION STRATEGIES

Most banks pursuing this modernization strategy have open banking

ambitions. Apart from BIAN’s service landscape (currently 8.0), its API

portal catalog is being used to support core modernization efforts. Although

there are similarities between the Abstraction and Undercover

modernization strategies, banks with higher levels of complexity are drawn

to BIAN’s approach to organize services by business domain such as

consumer lending, commercial lending and deposits.

Participating Partners

Current technology enables a

coreless architecture that

allows banks to choose best of

breed without creating strong

technical coupling.

Cyberbank is an extensible framework,

a canvas for you to model your digital bank on.

You are not limited by technology, but

powered by it to design the features and

capabilities that will set you apart.

APIs and stateless execution

are key elements of such an

architecture.

Technisys’ Cyberbank

decoupling of business logic

from technology and structural

flexibility enables the

implementation of BIAN compliant

modules in a coreless banking

ecosystem.

A microservices architecture

provides all the right ingredients to

realize the coreless banking and BIAN

design principles.

BIAN is not a theoretical

exercise, it can enable real

world practical scenarios that

implement its vision.

LESSONS LEARNED

BIAN CORELESS BANKING INITIATIVE ON

CYBERBANK

Zafin: Key Learnings

Interoperability

Value

Contribution

✓ Validated BIAN proposition of interoperability between channels and

multiple core processing systems across the banking ecosystem through

BIAN compliant micro services based Open API’s

✓ Zafin’s cloud native Product and Pricing effectively demonstrated value of

an externalized product and pricing layer in building out a coreless bank

proposition and hollowing out the core

✓ Ongoing feedback provided to further contribute into augmenting the

BIAN API’s to support a higher-level business layer and logic with cross

domain orchestration thereby enabling core simplification

31

BIAN and API Models for microservices – Infosys

➢BIAN is an excellent framework for defining the scope and domain set for generic banking APIs

➢ The BIAN Service Domain landscape provides a good background to ensure non-repeating (canonical) definitions for API functionalities

➢BIAN has yet to provide guidelines if we want to break down functionality within a Service Domain.

➢BIAN service operations may miss certain business requirements of Banking processes e.g. Customer De-duplication check during onboarding,

politically exposed person check during onboarding etc.

➢BIAN is not intended to provide specific implementation guidance or technology mapping for service domains. Few BIAN services are STATEFUL e.g.

Prospect Onboarding which may require workflow / manual steps and need BPM toolsets.

➢BIAN does not provide implementation architecture patterns specific to microservices such as CQRS, Event Sourcing etc.

➢ Industry best practices for API standards need to be applied in order to complete the API specifications for API such as:

➢Collections vs Resource during resource modelling e.g. /customers/{customerID}

➢Do we need Control record in URI as the service domain is already present. CR and SD are 1-1 ? Hyphen vs loweCamelCase in URI.

➢Recommendation on URI when we to go beyond BQ level or use more than 1BQ but not entire CR?

➢ Standard headers which are required between various API interactions such as Session Id, Correlation Id, Channel Id

➢ Standard status code / error codes, Async Responses. Beyond the BIAN HTTP 200 mapping

➢ Error Payload. How to show backend specific alerts to consumer ? How to expedite root cause analysis ?

CHALLENGES: From the point of downloading the BIAN models to implementing them, there are various practical needs that architects,

API modelers and API developers need to fulfill in order to deliver Microservices

BIAN URI /service-domain/control record/{cr-reference-id}/behavior qualifier/{bq-reference-id}/action-term

BIAN API Exchange Sample : /party-authentication/party-authentication-assessment/{cr-reference-id}/passwords/evaluation


Freemium

BIAN’s Internal Wiki and Official Homepage

33 Copyright BIAN 2020 | Banking Industry Architecture Network


▪ Fees (annual membership)

▪ Software / Tech vendors / Integrators

(250 employees or more)

▪ EUR 30.000,-

▪ Banks / FI’s that are not vendors

▪ EUR 20.000,-


(less than 250 employees)

▪ EUR 10.000,-

▪ Federal Banks / Central Banks

▪ EUR 10.000,-


(less than 50 employees)

▪ EUR 5.000,-

▪ Academic Partners

▪ EUR 0,-

Member driven organization


2020 - Planned BIAN Open Webinar

35

Webinar on BIAN API Usage at a US Bank

July 28th 4pm – 5pm (CEST)

10am – 11am (EDT)

Copyright BIAN 2020 | Banking Industry Architecture Network36

Questions?Please stay muted and type

your Questions in the righthand

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[email protected]