KuppingerCole Report
By Richard Hill

ForgeRock Identity Platform for PSD2 & API Security

The Revised Payment Service Directive (PSD2) promises to make the European Union (EU) cross-border transactions further transparent, faster and more secure while increasing competition and choice for consumers. To do so, Banks and other financial service providers must quickly make the necessary technical infrastructure changes to prepare for PSD2. The ForgeRock Identity Platform provides the security features and supports the open standards needed to deliver the secure APIs required for PSD2.

Commissioned by ForgeRock

1 Executive Summary

Just as Automated Teller Machines (ATM) changed the way customers interact with their banking institutions, eliminating the need to wait in line to ta ...

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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, UK Open Banking and Berlin Group NextGenPSD2

How the EU will interact with financial services and make payments is changing dramatically for the better through more secure and transparent transac ...

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3.1 PSD2

The Second Payment Services Directive (PSD2) is the EU Directive 2015/2366/EU1, which has been in work for a number of years and amends and succeeds ...

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3.2 PSD2 Secure Communications

Banks and other account holding institutions will have to expose APIs for TPPs (AISP and PISP) to utilize. AISPs will need to read account informatio ...

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3.3 UK Open Banking

In the UK, Open Banking was created to address the problem in which older, more established banks lacked incentives to compete for customers and newer ...

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3.4 Berlin Group NextGenPSD2

As mentioned above, PSD2 does not dictate which technologies to use or what an API should look like. This could lead to complexity in differences betw ...

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4 PSD2 RTS architecture technical capabilities

Banks and TPPs should begin deploying their PSD2 solution architecture as soon as possible, in order to comply with PSD2. This will most certainly mea ...

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4.1 Secure Communications

Banks have to provide secure APIs for TPPs and other banks to use, which will require banks to do most of the heavy lifting. Almost invariably, banks ...

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5 ForgeRock Identity Platform as a foundation for PSD2-compliant architectures

A foundation to build compliant architectures will be needed to meet the different API facet requirements to support EU banks and TPPs.

Any Account ...

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5.1 ForgeRock Identity Platform Overview

In general, there are two main common services in the ForgeRock Identity Platform. First is what ForgeRock calls the “common platform”, which prov ...

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5.2 ForgeRock support for PSD2

At a minimum, banking entities must comply with some core technical requirements, which include strong customer authentication (SCA), secure APIs, and ...

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5.3 ForgeRock support for NextGenPSD2

The Berlin Group NextGenPSD2 is working to standardize the PSD2 Access to Account (XS2A) APIs making it easier for TPPs to access customer bank accoun ...

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5.4 ForgeRock support for UK Open Banking

The UK's Open Banking standard has called out OAuth2 and OIDC as the preferred standard for API security. ForgeRock supports both of these open standa ...

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6 Summary and Recommendations

The deadlines for PSD2 are quickly approaching. Technology insertions will most certainly be necessary for banks and TPPs to put the RTS requirements ...

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