“The cloud-based Connext platform is Hanseatic Bank’s solution to the Open Banking requirements."

  • Michael Luft

  • Head of IT at Hanseatic Bank

Michael Luft Hanseatic Bank

Introduction

Meet the game-changer that is drastically transforming financial services. Meet PSD2, Revised Payment Service Directive. A challenge to many banks, including Hanseatic Bank that took this opportunity to improve their services. In short, PSD2 enables bank customers, both consumers and businesses, to use third-party providers to manage their finances. This set of Open Banking standards, for banks to comply with, was set by the European Commission.

One of the many banks impacted is the German Hanseatic Bank, which specializes in four core business areas: consumer credit, deposit, insurance and factoring. Since 2005 this private bank is largely owned by Société Générale, promoting an open approach to develop offers and client satisfaction. Hanseatic Bank took up the challenge and started their Open Banking journey.

Open Banking and PSD2

PSD2 is the legislation with which the European Commission aims to improve innovation, reinforce customer protection and improve the security of internet payments and account access. For banks, this implicates that the monopoly on their customer’s account information and payment services is about to disappear. A transformation from a heavily protected vault with customer information to an open platform for a more modular approach to banking is the new standard.

Hanseatic_Bank-Hamburg-Strasse800

The challenge

Hanseatic Bank recognized the opportunities for competitive advantage presented by these Open Banking API standards. This compliancy is a possibility to improve time-to-market and enable new business models. However, the Hamburg-based private bank also felt a huge responsibility towards their current and future customers to protect their user data.

To achieve this, Hanseatic Bank would need an integration partner that could work time efficient in order to meet deadlines set by the European Commission. Since PSD2 is a regulation rather than a standardization of the API itself, the solution would have to be adaptable, setting just the right technology infrastructures. In a safe cloud environment, with regard to the bank’s current IT processes.   


“In order to comply with the Open Bank API standards, we decided to work with WSO2 technology. Yenlo was selected as the system integrator because of their extensive WSO2 experience. Together we created an efficient, scalable and secure Open Banking platform.”

Michael Luft, Head of IT at Hanseatic Bank

The solution

With this in mind, Hanseatic Bank started to implement the Open Banking API and PSD2 compliancy based on the WSO2 Open Banking technology stack – a technology that fits right in with the bank’s architecture principles. The company selected Yenlo as the system integrator. Their flexible integration as a service solution, called Connext, was exactly what Hanseatic Bank needed to complete their Open Banking journey. Together with a committed team at Hanseatic Bank, Yenlo’s WSO2 Open Banking experts realized the implementation of Connext as well as the continuous managing, hosting and operational support of the platform.

“The cloud-based Connext platform is Hanseatic Bank’s solution to the Open Banking requirements. Enabling new business models while being sure that all our user data is carefully protected.”
 
Michael Luft, Head of IT at Hanseatic Bank

The Result

Thanks to the fully implemented, hosted and managed Connext platform, Hanseatic Bank found their perfect solution to the Open Banking requirements. With this Managed Middleware Platform, the company is compliant with PSD2. Through Identity & Access management it has full control over who wants to access which user information. When it comes to security, the platform continuously monitors possible security risks, automatically shutting down parts of the system when needed. The Connext solution is fully scalable and will expand with the growing demand for API requests.

About Hanseatic

As a private bank based in Hamburg founded in 1969 by Otto Versand, Hanseatic Bank operates throughout Germany. It specializes in four core businesses: consumer credit, deposit, insurance and factoring. The company’s products are distributed by partners as well as directly in one of the nine branches, online or through its own service center. Hanseatic Bank offers their retail partners flexible financing models for every distribution channel and at the same time an effective means of building customer loyalty.
In 2005, the major French bank Société Générale acquired 75 percent of the shares. Otto Group continues to own a 25 percent stake. The bank has more than 500 employees working at the headquarter and the subsidiary Hanseatic Service Center GmbH in Hamburg.

Société Générale is one of the leading European financial services groups. Active in the real economy for over 150 years, with a solid position in Europe and connected to the rest of the world, Société Générale has over 147,000 members of staff in 67 countries and supports on a daily basis 31 million individual clients, businesses and institutional investors around the world.

About Yenlo

Yenlo is a global system integrator and specialist in enabling digital transformation with open source and agile technology. Yenlo is the most advanced Certified Premier Partner (CPP) and official Value-Added Reseller (VAR) of WSO2. Our business is founded on the belief that enterprises need to regain their agility and become digital agencies to optimize their customer intimacy; achieve operational excellence; or add new services, products, or business models. We believe this agility—in technology, knowledge and finance—can be created by applying an open source-first, API-first, and cloud-first strategy.

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