The Open Banking Revolution

Codification has a record of helping banks and fintech succeed with their open banking initiatives, helping them grow their customer bases and products. The ability to securely access and aggregate a customer’s entire financial portfolio and to initiate transactions offers a wealth of opportunity not seen in banking since the introduction of the World Wide Web.

We can help you dominate in this field by decreasing your time to market, introducing new products, and reducing operational overhead through the application of state-of-the-art processes and technologies.

Open Banking Use Cases

 

Lending and credit markets were the first to take advantage of Open Banking. Personal finance, payments, and insurance are the latest entrants into a multi-billion dollar market that is less than a decade old.

Most open banking scenarios involve three (3) basic roles: Payment Provider, Payment Initiator, and Aggregator. Examples of all three are referenced in the following use cases.

Codification will help you at all stages of product engineering, but we excel in the design and architecture of automated, scalable systems that can help you reach your full potential, not just in your home region but also internationally.

USE CASE 1

Account Aggregation

By aggregating information from all of a customer’s bank accounts, it becomes possible to offer the other services listed here. The ability to do this securely, with consent and control, has become a very profitable service for companies like Plaid, which integrates with over 11,000 financial institutions globally.

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USE CASE 2

Instant Credit Risk

Once all of a customer’s accounts are accessible in real-time, it becomes possible to analyse their current financial position and rapidly make risky decisions. This capability underlies the majority of By Now, Pay Later (BNPL) schemes and other credit-based services, such as insurance payments.

With the customer's consent, for example, the aggregator could send the risk information to a car showroom, where a dealer could only recommend cars that the customer could afford.

USE CASE 3

Embracing New Payment Methods

Travelling on London’s tube has never been easier. A passenger needs only touch their phone to a yellow pad at the entrance and exit, and London Underground will charge their bank for the journey.

This is achieved through the use of Stripe, a payment initiator that has been configured by the customer to allow small charges against a nominated bank account. This has decreased the congestion at the entrances and exits of stations, allowing a higher throughput of passengers. Stripe takes a tiny fee for facilitating the payment, but it does this for millions of journeys every day. Google Pay, Apple Pay, WeChat Pay, etc. are all based on Stripe technology in over 135 currencies.

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USE CASE 4

Personalising Products and Experiences

A bank that is able to see the full financial position of its clients in real-time can offer higher-quality wealth management services while reducing risk. It becomes possible to offer a full portfolio of services under a single brand, including health, wealth, and insurance, all of which can be tailored to a person’s needs and risk appetite. Because this becomes automatable, it becomes possible to offer these services to a wider range of clients than ever before.

USE CASE 5

Personal Finance - Planning and Advice

Analysing financial history across all sources in real-time will allow customers unprecedented insights into their financial positions and allow specialised software to offer advice on all aspects of financial discipline. With the rise of automated analysis software (AI), it has finally become possible to provide high-quality advice at a very low cost and scale.

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Our Engagement Method

Our structured approach ensures your needs are met with minimal surprises along the way. Based on industry best practices, our proven methodology spans five phases.

  • 1Discover where you want to be
  • 2Discover where you are
  • 3Implementation Roadmap
  • 4Project Implementation
  • 5Ongoing Support
  • Discover where
    you want to be
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    High-level requirement gathering.
    Depending on the complexity of the requirements, this can take from a couple of days to a week or two and may include interviews and workshops with the project’s leadership team and stakeholders.

  • Discover where
    you are
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    Capability assessment, which typically takes a week or two to complete. This shows the systems that are part of the project and your level of skill when it comes to putting the project into action. The information gathered here goes into the next phase to help design the implementation roadmap and plan the project.

  • Implementation Roadmap
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    Planning phase.
    We help draw up the solution design and plan the project to fit your needs, budget, and timescales. Codification has a well-earned reputation for designing high-quality, fully automated solutions that significantly reduce the total cost of ownership.

  • Project Implementation
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    Project implementation is often accomplished through a combination of consultation, training, and staff augmentation. Codification applies a fully automated, cloud native, security-first approach to our engineering practices, resulting in repeatable, robust systems that minimise costs.

  • Ongoing Support
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    Through our managed services offering, we can address the time and resource burdens you may encounter while managing the new cloud native status quo. Through our talent pool and consulting services, we provide continuous, ongoing support to make sure your IT needs are met reliably and consistently.

Codification Use Cases

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First Direct Bank (part of HSBC Retail and Wealth Management Banking Group) worked with us on a number of projects. We took a lead role in their nascent DevOps group, providing initial leadership and a roadmap for development, and we took a pivotal role in the Enterprise Architecture team, helping to govern a multi-year 150 engineer project.

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HSBC Commercial Bank UK engaged Codification to lead the cryptography portion of their open-banking API. Codification staff took an existing low-quality system, developed a roadmap for enhancements and automated the delivery process. This sub-system is now in use in dozens of countries globally and continues to be one of the least problematic parts of the larger system.

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ABN AMRO chose Codification in Amsterdam to lead the design and implementation of their crown-jewel secrets management system which formed a core part of their highly successful open-banking platform. Codification staff integrated tightly with the bank over an 18-month period to help select an appropriate product, design the governance and controls of the system, design the solution, and lead the delivery team through to delivery and adoption.

Ready to Adopt the Open Banking Revolution?

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