Future Finance Data Innovationswith Open Banking and PSD2

Speaker

• Solution Architect

• Java developer background

• With Suomen Asiakastieto since Spring 2016

• 50/50 between projects and cool stuff

Eero Arvonen

ASIAKASTIETO GROUP:SUOMEN ASIAKASTIETO + UC

Asiakastieto Group:Suomen Asiakastieto + UC

• Among leading providers of business and consumer information services in the Nordics

• Powerhouse for data

• Fintech: New data innovations

• Risk management, finance, administration, decision making, sales, marketing

Topics

• Rationale of our market presence within Open Banking

• Our PSD2 product: Account Insight

• Future

• Taking Account Insight subatomic with Quarkus

RATIONALE OF OUR MARKET PRESENCE

Changing Financial Markets

• Financial crisis 🡪 new regulation− More demand on the data we already have

− Access to new data on which to build services

• New regulation affects banks’ business and increases costs

• Automation on new data sets via scalable technology

• Compliance is key

MiFID

AML

Basel

KYC

CRS

PSD2PSD

IFRS

CRD

UCITS

GDPR

Rationale of our Market Presence

First: Investigating PSD2, understanding effects on clients

Then: Client demand in new business opportunities

Now: Account Insight 1.0 launched

Next: New opportunities for clients, new services

ACCOUNT INSIGHT

IMPACT IN SOCIETY

Fighting against overindebtedness in Nordics.

Access bank account dataof a loan applicant (PSU) based on their consent

Process the data in the contextchosen by the PSU on behalf of

the lender

Deliver actionable facts regarding the applicant’s financial behavior

In a compliant way

REAL-TIME CALCULATION OF

THE ABILITY TO PAY AND CASH

FLOW

REAL-TIME INCOME AND

IBAN VERIFICATION

NEW AUTOMATED

TOOLS FOR RISK ASSESSMENT

Transaction data as a value creator

Banks + Partner

Services & Functionalities

API Raw Data

APIData Rules

Rule Engine

ClientsClient

Add value

Solution

Access

PSD2 Service Design

• Containers on OpenShift

• Microservice architecture

• Thorntail for backend

• React+Node.js for frontend

• Java 11

• ”Joints”− New banks/aggregating partners

− Parts of the process should be detachable

Together with the clients

• Unprecedented interest among clients

• Design with clients in regular workshops

• Scrum, Code review, pair programming

• Test environment released to pilot clients before production

THANK YOU! Reetta Sinelampi

reetta.sinelampi@asiakastieto.fi+358 50 368 0120

THANK YOU! Reetta Sinelampi

reetta.sinelampi@asiakastieto.fi+358 50 368 0120

Benefits from working with OpenShift

• Quick setup with Thorntail

• From code to test in <5 minutes

• Containers and microservices -> freedom in choice of technology

• High availability, easy to scale, automated recovery

FUTURE

New service initiatives• Flipping the script – business intelligence− Anonymize transactions and save them− Save age, gender and location− ”Women aged 20-34 prefer H&M to Zara in Stockholm

77% to 23%”− ”Zara gaining market share 0,3% per quarter since 2015”

• Synergy benefits by combining the new data with existing services

• MyData

• Digital receipts

• Anti-fraud services

TIME TO GO SUBATOMIC

Pain points

•Reflection

•SSL

•Could not get Web Service calls to work

•Application booted at build time

•Logging configuration

Thoughts on (native) migration

Hurts less in green field projects

but

Everyone should try JVM+Quarkus

Migration gains

Test case

• Jmeter

• 1 thread

• No CPU limit

• Calling the only mandatory endpoint

• ~10 minutes per test

Resource utilization

Resource utilization

Performance

QUESTIONS?

THANK YOU!Eero Arvonen, eero.arvonen@asiakastieto.fi, +358 40 828 5459