Hello banking and fintech friends! I had the opportunity to sit down with Anmol Grover, Open Banking Lead for Wipro and Alix Melchy, VP of AI at Jumio, to learn more about how we work together to provide banks with a secure and innovative solution that enables digital transformation and identity verification.
What is open banking?
Open banking allows third-party developers to access the data of bank customers (assuming the customer gives consent), building new services on top of public APIs. So far, open banking has been driven by regulatory action in places like the UK, Australia and India, as governments seek to create more competition in the banking industry. The United States has taken a more market-driven approach to open banking.
Jumio + Wipro – Better Together for Fintech Customers
Who is Wipro?
For over 75 years, Wipro has been making their clients’ ambitions a reality by orchestrating a holistic portfolio of capabilities across cloud services, cybersecurity, artificial intelligence, engineering and consulting. As a leading technology and consulting company they are focused on building innovative solutions that address clients’ most complex digital transformation needs.
How do Jumio and Wipro work together?
Today’s fintech customers are looking for a hyper-personalized solution that meets compliance requirements. Wipro helps the financial industry thrive in an ever-changing environment by offering the right product within the customer journey, allowing for safe data sharing and transforming the core banking systems moving from legacy to cloud.
Wipro leverages Jumio’s identity and access management system to provide its customers with a solution for open banking compliance and monetization. In short, Wipro provides consultancy, products and a set of solutions while Jumio provides the technology for identity access management.
How are we solving the customer pain point together?
With open banking, customers more or less “own” their own data. Nevertheless, banks will remain legally accountable custodians of that data. They will need to create new open banking APIs, comply with new regulatory frameworks and ensure robust security – all while competing with the third-party developers who will now have access to their once-proprietary customer data.
By working with clients in countries that have been early adopters of open banking (including the UK, Australia and India), Wipro has developed a deep understanding of open banking. Wipro’s technology solutions enable digital transformation, allowing banks to not only attain open banking compliance but to innovate and find new business opportunities in the open banking universe.
Jumio’s identity and access management solution fills a crucial piece of the open banking puzzle, allowing banks to boldly innovate in the new open banking universe with the assurance that their customers’ information is secure.
What will Wipro customers get out of our integration?
Users should expect a frictionless experience. Jumio integration enables highly accurate yet streamlined digital identity verification while also moving the burden of identity verification from banks themselves onto a trusted ecosystem partner.
More broadly, as advanced identity verification frameworks are adopted across industry-wide consortia, transactions will no longer be fragmented, and it will become much easier to identify suspicious chains of activity. This transparency will enable exciting innovations across the industry.
What are some challenges banks have faced when implementing Open Banking?
In the growing ecosystem of open banking, authentication and identity management rest solely with the account-holding banks that know the end users and will be in charge of authenticating them.
In an open banking universe, incumbent banks face increased competition from newer digital banks and fintech apps. At the same time, banks have a new responsibility to share customer data and develop new APIs while ensuring the security and proper use of customer data. At times, the exact implications of new open banking regulations on customer data practices may be murky.
How has Wipro helped clients in embracing open banking?
In regions where open banking is driven by regulation (UK, Europe, Australia, India), Wipro has become a trusted technology and consulting partner, working with clients to build robust regulatory compliance capabilities.
Wipro also leverages deep experience in open banking ecosystems (including in the U.S., where open banking is currently market-driven rather than regulation-driven) to help clients unearth new revenue opportunities. Wipro works with clients to design new user journeys, inject new capabilities with fintech ecosystem partners and open banking product suites and open up legacy systems with digital transformation.
How can Jumio ensure trust in an open banking ecosystem?
For banking and fintech especially, trust relies on identity. Fortunately, Jumio provides strong identity verification capabilities linking users to a real-world identity. Jumio also provides ongoing risk management and compliance management (PEP, sanctions, AML consumer monitoring, AML transaction monitoring) and biometric-secured authentication. All of these are essential in creating an ecosystem of trust.
What are some of the trends Wipro has witnessed in other geographies with respect to the rollout of open banking?
An open banking strategy will often have two components: compliance and monetization.
First, banks need to comply with new regulations. That often requires modernizing legacy systems and optimizing their internal data structure, building new internal collaboration capabilities and interacting with industry-wide bodies to stay on top of emerging best practices. As they open up their data and align with the compliance requirements, they also need to pay close attention to some of the edge cases that emerge when it comes to handling customer data.
As banks move further along in their open banking journey, as we are seeing in the UK and Europe, they need to figure out their ecosystem participation strategy. How will they partner with third-party developers, and how will those partnerships lead to new monetization and business opportunities? Banks need to identify likely use cases, and then align those use cases with their internal capabilities. As they explore new opportunities in the open banking ecosystem, the banks that tend to succeed are those that take a “fail fast” approach, quickly testing use cases, abandoning those that don’t connect with the market and rapidly moving on to new use cases.
What does the future look like in this space from a digital identity perspective?
Jumio provides customers with a solution that enables their consumers to use their digital identities when onboarding business customers. Jumio also acts as the facilitator of the assurance levels and compliance necessary for such onboarding transactions. By branching across ecosystems with their own digital ID, Jumio can support consumers by linking different sets of digital IDs into one identity.
Want to learn more about open banking strategy and trends?
Check out our most recent webinar on the rise of open banking to hear from our amazing panel of speakers.