There’s a new normal in financial services. Regulations such as the second payment services directive (PSD2) and the Open Banking project spearheaded by the UK’s Competition and Market Authority (CMA) are driving disruption in the banking value chain. Customer behaviors are changing, making it necessary to find new ways of interacting and creating engagement. Meanwhile, new competitors are entering the market and tearing up the traditional banking rule book.
How can financial institutions transform rapidly and flexibly while maintaining their investments in core systems? At IBM, we believe that renovation is the right option: Take an incremental approach, prioritizing by business domain, responding to new regulations, and keeping the customer experience front and center throughout. To facilitate digital transformation for financial institutions, we’ve developed the IBM Open Banking Platform, a software suite designed to enable fast creation of next-generation apps, low-risk innovation, and regulatory compliance. Bridging the gap between core systems and the cloud, the IBM Open Banking Platform acts as a microservices layer on top of your existing environment to enable easy plug-and-play integration. In short, it enables you to augment and revitalize your existing systems, rather than undertaking the cost, effort, and risk of a complete overhaul.
In the code pattern “Create a merchant site that’s integrated with bank payments,” we demonstrate how a bank’s merchant would leverage the IBM Open Banking Platform. This pattern showcases the simple benefits of the payments API of the platform by integrating it with an example of a Node.js web application. The example is of a merchant’s fashion store. Upon checkout, customers complete purchases by paying directly from their bank account in a safe and secure manner.