By Jasen Meece, CEO of Cloudentity
According to an April 2021 report, the global open banking market is anticipated to grow more than 24% over the next 6 years. Like no other development in decades, open banking puts the power of financial data back in the users’ hands to ensure that data can be used for their own benefit; from easier access to cheaper loans for businesses, to the ability to manage money quickly and easily, increased competition beyond the big banks, and more. However, Open Banking is not without its risks. On May 18th, Cloudentity took part in Open Banking World Congress 2021 to highlight the risks financial institutions need to address, such as API security and data misuse, in order to maintain consumer trust and privacy.
In Cloudentity’s panel session, we sat down with Axway’s Eyal Sivan and Okta’s Prashanth Ram to discuss one of the most complex issues organizations are facing today – finding the balance between data access and customer privacy during the rapid proliferation of open banking APIs brought on by the pandemic. They break down the tools and processes needed to not only control data flow in order to share it securely, but how companies can achieve Zero Trust within their open banking architecture.
Cloudentity’s Nathanael Coffing was joined by Okta’s Jacquelyn Painter for a deeper dive into some of the issues facing open banking APIs, including a lack of API security expertise, more data exposure, potentially shadow APIs, and the speed and ease with which data can be extracted via open APIs. To address the API security and compliance threats outlined during this session, they discuss the critical role of fine-grained authorization.
Cloudentity partners with both Okta and Axway as part of its Dynamic Authorization Open Banking Sandbox which is a proven model that provides a secure infrastructure for enterprises deploying API-driven services for Open Banking. It uses context-based Dynamic Authorization based on who, what, where, when and why to authenticate a user’s identity and securely connect them to their financial apps and services. Cloudentity’s Authorization Control Plane, a key component of its Open Banking solutions, provides financial-grade APIs along with the management, enforcement and auditing necessary to meet strict compliance standards.
Cloudentity’s capabilities solve the complex security challenges in Open Banking and help to assess the context of each data transaction for better security and improves customer experience for financial services apps. Watch the full panel discussion with Cloudentity, Okta and Axway here: Balancing Data Access and Privacy: Why Consent is Key for API Security – Open Future World
Watch the joint session with Cloudentity and Okta here: Open banking APIs: Mitigating security, privacy and compliance risks – Open Future World