KuppingerCole Report
Whitepaper
By John Tolbert

Meeting PSD2 Challenges with Ergon Airlock Suite

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. Ergon’s Airlock Suite provides foundational technical capabilities that can help businesses meet the 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 c ...

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2 Highlights

  • EU PSD2 takes effect in January 2018
  • The Regulatory Technical Specifications governing 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 transactional ...

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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 Secure Communications

Banks and other account holding institutions must expose APIs for AISPs and PISPs to utilize. AISPs will need to create accounts and read account inf ...

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3.4 Market changes and risks

Banks will still hold money and make loans, but new companies are emerging to handle account aggregation and payment management. While banks will sti ...

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4 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 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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4.2 SCA

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 whe ...

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4.3 Secure Communication

Banks have to provide secure APIs for TPPs and other banks to use. Banks have the most work to do. Almost invariably, banks will have to implement API ...

Figure 1 shows some samples of the kinds of API calls that AISPs and PISPs will make to banks. The API calls are grouped by HTTP POSTs and GETs. Trans ...

Considering the above diagram, customer and TPP systems are in the left-most, and core financial applications and bank enterprise services are on the ...

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5 The Ergon Airlock Approach to PSD2 compliant architctures

Ergon Airlock Suite provides CIAM, SCA, and API security functionality that directly addresses the technical requirements of PSD2.

Ergon Informatik ...

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5.1 Airlock IAM for CIAM

Airlock IAM provides user and token management, user self-services such as registration and profile management, and identity federation. Self-registra ...

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5.2 Airlock WAF for API Security

Airlock WAF can be positioned at perimeters or internal network boundaries to inspect application traffic and protect internal resources. Airlock WAF ...

Airlock WAF has its own log analysis, alerting, and auditing capabilities. But it can also send log and event data to SIEMs using CEF and syslog.

E ...

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5.3 Airlock Login

Airlock Login is a lighter weight version of Airlock IAM. It can be deployed with Airlock WAF, but does not have to be. It offers password, OTP, MTA ...

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6 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 upgrade ...

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6.1 Recommendations for conducting a PDS2 Readiness Assessment

  • Read and understand the text of PSD2 and the latest RTS. Know which sections apply based on your type of business: banks will have the most work to ...
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6.2 Recommendations for meeting PSD2’s SCA and API Security Requirements

  • If desired strong authentications options are not available in your current IAM solution, procure and deploy a modern CIAM solution that offers SCA ...
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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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