KuppingerCole Report
Whitepaper
By John Tolbert

ForgeRock Identity Platform capabilities for Authentication under PSD2

The Revised Payment Service Directive (PSD2) will drive many changes in technical infrastructure at financial institutions across Europe. Banks and other financial service providers must quickly prepare for PSD2. ForgeRock Identity Platform provides strong customer authentication capabilities that can help businesses meet the technical challenges posed by PSD2.

1 Executive Summary

In the European Union, the Revised Payment Services Directive (PSD2) will radically alter the financial services landscape. It has already begun to cr ...

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2 Highlights

  • EU PSD2 took effect in January 2018. The Regulatory Technical Specifications (RTS) govern the implementation of Strong Customer Authentication (SCA ...
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3 PSD2: The background and Regulatory Technical Specifications

*PSD2 will revolutionize payments and financial services across the EU. PSD2 aims to foster competition in the financial sector, increase transactiona ...

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3.1 Background and goals of PSD2

The original PSD helped establish the Single Euro Payments Area (SEPA), facilitated cross-border payments, cut fees and increased choices for consumer ...

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3.2 Strong Customer Authentication

Clients of financial services must use strong authentication methods to access financial resources. As written, PSD2 defines strong authentication in ...

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3.3 Market changes and risks

Banks will still hold money and make loans, but new companies are emerging that will also provide services to handle account aggregation and payment m ...

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4 Technical capabilites for PSD2 RTS architecture

*Complying with PSD2’s regulatory technical specifications almost certainly means building new capabilities, functions, and features. Correspondingly, ...

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4.1 SCA and Transaction Risk Analysis

Many CIAM and IAM solutions on the market today support the concept of SCA. Companies that have to comply with PSD2’s SCA provisions must decide wheth ...

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4.2 CIAM

In order to offer SCA, a proper Identity and Access Management (IAM) solution is needed. Traditional IAM systems are designed to provision, authentica ...

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5 What you need from IAM systems for PSD2

In chapter 4 we see that, at a high level, banks and financial institutions need CIAM solutions with risk adaptive authentication mechanisms to achiev ...

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6 ForgeRock Identity Platform as a foundation for PSD2 compliant architectures

*ForgeRock Identity Platform can provide CIAM, SCA, and risk-adaptive multi-factor authentication functionality that directly address the technical re ...

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6.1 ForgeRock Intelligent Authentication for SCA and transactional risk analysis

ForgeRock Access Management, as a component of the ForgeRock Identity Platform, performs the authentication and authorization functions. It supports m ...

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6.2 ForgeRock IDM for CIAM

ForgeRock’s Identity Management module provides a rich set of features for CIAM. Users can self-register and manage their accounts, including consent, ...

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7 Recommendations

*PSD2 is fast approaching, and the RTS will require major technology insertions for many banks and TPPs. IAM/CIAM infrastructure may need to be upgrad ...

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7.1 Recommendations for conducting a PSD2 Readiness Assessment

  • Inventory existing IAM and risk management infrastructure: Can it offer strong customer authentication? Does it have sufficiently advanced risk anal ...
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7.2 Recommendations for meeting PSD2's SCA Requirements

  • Utilize risk adaptive authentication for transactions that fall under the purview of SCA. Use ongoing transactional risk analysis to reduce the need ...
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Copyright

©2019 KuppingerCole Analysts AG all rights reserved. Reproduction and distribution of this publication in any form is forbidden unless prior written permission. All conclusions, recommendations and predictions in this document represent KuppingerCole´s initial view. Through gathering more information and performing deep analysis, positions presented in this document will be subject to refinements or even major changes. KuppingerCole disclaim all warranties as to the completeness, accuracy and/or adequacy of this information. Even if KuppingerCole research documents may discuss legal issues related to information security and technology, KuppingerCole do not provide any legal services or advice and its publications shall not be used as such. KuppingerCole shall have no liability for errors or inadequacies in the information contained in this document. Any opinion expressed may be subject to change without notice. All product and company names are trademarksTM or registered® trademarks of their respective holders. Use of them does not imply any affiliation with or endorsement by them.

KuppingerCole Analysts support IT professionals with outstanding expertise in defining IT strategies and in relevant decision-making processes. As a leading analyst ompany, KuppingerCole provides first-hand vendor-neutral information. Our services allow you to feel comfortable and secure in taking decisions essential to your business.

KuppingerCole Analysts, founded in 2004, is a global analyst company headquartered in Europe focusing on Information Security and Identity and Access Management (IAM). KuppingerCole stands for expertise, thought leadership, outstanding practical relevance, and a vendor-neutral view on the information security market segments, covering all relevant aspects like: Identity and Access Management (IAM), Governance & Auditing Tools, Cloud and Virtualization Security, Information Protection, Mobile as well as Software Security, System and Network Security, Security Monitoring, Analytics & Reporting, Governance, and Organization & Policies.

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