Oracle releases Open API suite; transaction filtering service for account screening

Source: Oracle

In today’s economy, banks seek to adapt a more customer-centric business model by delivering new services with greater transparency.

Traditional banks understand that they must equip themselves with digital capabilities to avoid being disintermediated by new players in the industry. Oracle’s open API banking solution set can help banks make the difference they need. Packaged and ready for integration with any financial institution’s tech ecosystem, Oracle’s end-to-end solution is well suited for open API initiatives that require design, documentation, simulation, management, identity/security management and monetization backed by business analytics.

With both, the rise of fintechs and increased scrutiny from regulatory agencies dominating
industry conversation, banks must look to embrace change rather than simply comply with it. This means going beyond acting as traditional banks and begin operating as ‘platforms’ that enable direct integration from third party applications. Open API protocols have even gained global prominence through region-specific initiatives that focus on end-customer benefits. PSD2 regulation in the European Union and initiatives by the Singapore Monetary Authority, U.K. Financial Conduct Authority and Australia Economic Committee are ongoing efforts to make open banking and open APIs standard.

This environment ushers an age of transparency that demands an open API architecture, which typically requires components from several vendors if it is to be executed successfully. Oracle today, eliminates the need of engaging with multiple vendors, and offers customers an end-to-end open API solution under one roof. It also provides the added benefit of an unparalleled hyper-connected experience.

“Times have changed and today, more than ever, a two-fold approach is necessary when implementing customer facing technology,” said Oracle Senior Vice President Chet Kamat. “Quite simply, the two aspects are acquiring plug-and-play lifecycle experience products—like mobile applications and omni-channel user experience solutions—and adopting open API banking. Oracle offers a solution versatile enough to cater to both these needs.”

Oracle’s open API banking solution enables financial institutions to roll out their API initiatives quickly. Banks can gain new revenue streams, rethink their operating and business models, all without disrupting their pre-existing tech architecture. This is made possible by the sheer breadth of offerings within Oracle’s toolset.

Oracle’s open API banking solution set includes:
• Oracle Banking Digital Experience: This full spectrum multi-channel solution provides over 1000 fine grained APIs which can be leveraged for Open Banking.
• Oracle Revenue Management and Billing: Allows the bank to price each API call based on rate plans blended with enterprise class relationship pricing. This provides a unique API monetization model for financial institutions.
• Oracle Identity Cloud Service Management: A next-gen security and identity platform that helps banks define and manage their API security policy.
• Apiary: This cloud banking platform can be leveraged to design, prototype, document and test APIs.
• Oracle API Platform Cloud Service: Manages the entire API lifecycle beginning with design and standardization to documenting, publishing, and parameterization and testing of prototypes.
• Oracle Banking Payments: With payments underlining most API regulations, banks need a robust payments engine to deliver rich payment experiences. Built grounds up on ISO20022 Oracle’s payments solution gives banks the ability to cater to rich API workloads.

Separately announced today, Oracle Financial Services Transaction Filtering product is now widely available. The solution, which integrates tightly with Oracle Financial Crime and Compliance Management (FCCM), holds the sanctioned transactions in real-time with accuracy and efficiency. The offering enables compliance with current legal and regulatory requirements with the ability to filter against key watch lists—such as the U.S. treasury, European Union and United Nations—via pre-integrated Oracle architecture. Powering the FCCM suite is Oracle Financial Services Analytical Applications (OFSAA), a leading provider of financial crime, risk and compliance solutions.

Today’s financial climate demands evolved sanctions screening technology that not only narrows down false positives, but learns from previous instances. False positives can clog up banking systems and result in transactions remaining on hold until a full investigation has been conducted. When coupled with mounting regulatory obligations that levy sanction-based fines and penalties, instantaneous vetting is no longer a nice-to-have, but a necessity. While proper transaction filtering continues to be top-of-mind for financial institutions, many systems are marred by ineffectiveness and productivity hurdles.

“The release of our Transaction Filtering product re-affirms Oracle’s understanding that compliance and risk are of paramount importance to c-suites at financial institutions,” said Oracle Financial Crime and Compliance Management Vice President Sunil Mathew. “To operate smoothly, financial institutions need an integrated Financial Crime & Compliance solution; and there’s currently not an offering like ours that provides a complete package for fraud, crime and compliance.”

The demand for an integrated FCCM solution that combines everything from customer screening to AML and sanctions has grown. Oracle’s sophisticated matching algorithms and data management capabilities reduce the possibility of false positives while maintaining real-time detection standards and automatically generating an audit trail that denotes alterations (a regulatory requirement).

There are hundreds of transaction filtering compliance lists globally that change frequently, leaving companies struggling to find new innovative solutions to keep up with the changing regulatory landscape. Oracle’s solution monitors these regulations in all relevant jurisdictions and possesses the technological excellence to meet this challenge in an automated way with the launch of their Transaction Filtering product.

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