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3
Core Technologies and Open Banking
Session Objectives
- ✓Understanding technical architecture of Fintech systems
- ✓Learning Open Banking and its applications
- ✓Understanding APIs and their importance
- ✓Learning emerging technologies (AI, Blockchain)
- ✓Exploring infrastructure companies (AML, KYC)
Session Content
1
Technical Architecture of Fintech Systems
Modern Architecture (Cloud-Native)
- •Microservices vs Monolithic
- •Cloud Computing (AWS, GCP, Azure)
- •Benefits: Flexibility, rapid scaling, lower cost
- •Comparison: Traditional vs Cloud architecture
APIs in Financial Services
- •What are APIs and their importance
- •RESTful APIs
- •Examples: Stripe API, Plaid API
- •System integration
- •API Security (OAuth, API Keys)
Cybersecurity
- •Encryption: AES-256
- •Multi-Factor Authentication (MFA)
- •Tokenization
- •Penetration Testing
- •Standards: PCI DSS, ISO 27001
2
Open Banking
What is Open Banking?
- •Definition: Sharing financial data via APIs
- •Forcing banks to share customer data (with consent)
- •Unified and standardized APIs
- •Goal: Increase competition and innovation
Open Banking in Saudi Arabia
- •SAMA's Open Data initiative
- •Mowel system for digital financing
- •Standard APIs framework
- •Gradual mandatory implementation
- •Leading companies: Lean Technologies
Use Cases
- •Aggregate accounts from different banks in one app
- •Get loans based on real data
- •Automatically compare financial offers
- •Analyze spending and smart savings
- •Instant income verification for lending
Market Impact
- •Banks: From data monopolizer to service provider
- •Fintechs: Ability to build on bank data
- •Customers: Greater control over data, more options
- •Competition: Increases and services improve
3
Infrastructure and Supporting Service Companies
KYC/AML Services
- •Identity verification: Nafath (Absher), Onfido, Jumio
- •Sanctions Screening: Dow Jones, LexisNexis, ComplyAdvantage, Refinitiv
- •Credit Scoring: SIMAH (Saudi), Experian, Equifax
- •Document Verification: OCR + AI
- •Biometric Verification: Face, Fingerprint
Payment Processing
- •Payment Gateways: Stripe, Checkout.com, PayTabs, Geidea, Payfort
- •Card Processing: Visa, Mastercard
- •Digital Wallet APIs
- •POS Solutions: Rewaa, Foodics
- •International Transfers: Wise, Western Union APIs
Open Banking Providers
- •Lean Technologies (Saudi): Regional leader
- •Plaid (Global): 11,000+ banks
- •Tink (Europe): Open Banking as a Service
- •Finicity: Secure financial data
- •Services: Account Aggregation, Payment Initiation, Data Enrichment
Cloud Infrastructure
- •AWS: Comprehensive services, EC2, Lambda, RDS
- •Google Cloud Platform: BigQuery, AI/ML
- •Microsoft Azure: Specialized financial services
- •Requirements: Compliance certifications, Data residency
Communication Services
- •SMS: Twilio, Nexmo, Local (STC, Mobily)
- •Email: SendGrid, AWS SES
- •Push Notifications: Firebase, OneSignal
- •Chatbots: Dialogflow, IBM Watson
4
Emerging Technologies
Artificial Intelligence in Fintech
- •Fraud Detection: Stripe Radar, FICO
- •Credit Scoring: Smart AI scoring (Upstart)
- •Chatbots: 24/7 customer service (Erica - Bank of America)
- •Robo-Advisors: Automated investment management
- •Personalization: Customized offers and advice
Blockchain and Digital Currencies
- •Definition: Distributed and transparent ledger
- •Applications: International transfers (Ripple), Smart Contracts
- •CBDCs: Central Bank Digital Currencies (Aber project - SAMA)
- •DeFi: Decentralized Finance
- •Saudi position: Cautious on crypto, investing in blockchain
Resources & Links
📚Resources
- •Open Banking: What It Is and How It Works - Plaid
- •AI in Fintech: Use Cases - CB Insights
- •SAMA Report on Blockchain & CBDCs