OTP Bank extends partnership with ACI for open banking strategy

Hungary’s OTP Bank Group has extended its partnership with ACI Worldwide, a global provider of real-time electronic payment and banking solutions.

OTP, which is one of the largest independent financial service providers in Central and Eastern Europe, said it will utilise the full range of ACI’s UP portfolio of solutions to drive its digital transformation strategy.

It already utilises ACI’s UP Retail Payments Solution and UP Payments Risk Management Solution. However, as the bank continues its digital evolution, it will now leverage ACI’s API Manager capabilities and, in addition, implement UP Immediate Payments. Both solution sets will serve as the architectural foundation for the bank’s enterprise-wide open banking strategy.

“With the EU’s new PSD2 mandate, more Eastern and Central European countries are embarking on real-time and immediate payments initiatives,” said Mandy Killam, group president, ACI Worldwide. “Our UP solutions ensure that financial institutions can take advantage of this sea change by delivering openness while also ensuring the highest levels of privacy and data protection for their clients. Rather than simply ‘checking the boxes’ to meet the PSD2 mandate requirements, ACI’s UP solutions help clients to protect their existing business, grow revenues in the short term and place them in the pole position in the new open banking payments ecosystem.”

UP Immediate Payments offers a ‘complete range of capabilities’ for processing real-time payments. The solution provides connectivity, processing, origination, clearing and fraud detection across multiple real-time schemes, all on a single platform.

OTP said it will be using UP Immediate Payments for both the new domestic scheme in Hungary, which is mandatory and launches in 2018, as well as the pan-European schemes, including SEPA Instant Credit Transfer (SCTinst) and TARGET Instant Payment Settlement (TIPS).

ACI’s API manager capabilities are designed to support customers in developing a strategic approach to the emerging open banking payments ecosystem, and to provide the tools to meet established and emerging regulatory requirements including PSD2 and GDPR.

It provides connection to any front-end gateway, connection to any back-end system that a bank runs, providing a middleware API layer to help orchestrate the message flows and business logic.

ACI Worldwide, the Universal Payments (UP) company, powers electronic payments for more than 5,100 organizations around the world. More than 1,000 of the largest financial institutions and intermediaries, as well as thousands of global merchants, rely on ACI to execute $14 trillion each day in payments and securities.

The advent of PSD2 and the launch of more real-time schemes will offer our customers more options as well as greater control and flexibility,” said Tibor Johancsik, CIO/COO, OTP Bank. “ACI’s UP solutions will be a significant element of our architecture, playing a substantial role in our own open banking strategy, enabling us to capitalize on the opportunities that PSD2 and real-time payment present.”

Copyright © 2018 FinTech Global

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