W3C

W3C Bank Outreach: Priorities and Needs
08 Sep 2015

Agenda

See also: IRC log

Attendees

Present
dezell, Jiangtao, Ian, DJackson, padler, CyrilV, Linda_Toth, Arie Levy Cohen, Vincent Kuntz, Kris Ketels, Adrian Hope-Bailie, Amy Zirkle, Mark Tiggas (@@others@@?)
Regrets
Jurgen_Spaanderman, Leandro_Minniti
Chair
Arie Levy Cohen
Scribe
Ian

Contents


<CyrilV> +present CyrilV

<CyrilV> * thanks

<scribe> scribe: Ian

<scribe> Chair: Arie

Notes from previous meeting:

https://www.w3.org/Payments/IG/wiki/StakeholderPriorities#Banks

Arie: Goal is to arrive at a consensus on the top set of questions we should be asking banks about their interests and needs

Questions form last time

====

What Web / mobile use cases are you working on and when would you deploy?

What (WEB) standards are you already implementing? (e.g., OAUTH2).

What are the primary obstacles today that prevent you from deploying “credit transfer” (or, “push”) payment schemes?

(For central banks) What standards are necessary to implement your faster/more secure/open API initiatives?

===

<Zakim> padler, you wanted to ask about differentiated needs for Banks..

padler: Sorry I had to miss last call. Looking at the wiki and reflecting on what type of things where we might engage banks,

it feels like we should ask more for specificity in the draft questions.

scribe: e.g., where in the organizations these technologies could be useful
... e.g., with regards to identity, is it part of retail strategy?
... or concerns with bank to bank interop?
... answers likely to be different based on role
... different roles / different technology needs.
... e.g., if we ask what is hindering faster payments, it's more about bank-to-bank
... so we should ask more clearly what areas of the bank where these technologies would be deployed.

Arie: In the previous call we chose to focus on the retail side
... I think security is important whatever the department

Mark: I think Pat's point was broader. In order to serve my retail customers, it also matters how we connect with different institutions
... and, frankly, the technology becomes less important than the rules...more of a banking question than a technology question
... but the technology questions are different between whether I am connecting to a clearing house or asking for customer credentials

<Zakim> padler, you wanted to provide an example of where this may be important...

padler: If I think about consumer identity and accounts, and payment endpoints -- those may also be used by institutional or government processes (e.g., gov2person, or payroll)
... one does not need a different standard for payroll as for peer2peer
... the IG should harmonize what's being done in the retail space, and harmonize other flows with what's being done in the new WG
... e.g., to enable other entities to pay them...it should look consistent whether the payer/payee are 2 institutions, people, or governments.
... that does not imply that the messages would flow over the same pipes, but interoperability would be helpful.

CyrilV: When I looked at the minutes of the previous call, I saw mention of PSD2
... there are several bilateral relationships in these flows
... e.g., you have banks facing the customers and banks facing merchants
... banks serve a role of being a trusted party who can engage in payment ecosystem
... (Third party service providers in PSD2 lingo)
... the four corner model serves a valuable role of creating trusted relationships
... we have some standards for card payments (giving a 4 corner model)
... we have SEPAmail project (4 corner)
... and IDEAL in NL
... so there are valuable 4-corner models for payments but we don't have all the standards we need for the web
... to do 4 corners
... banks need good standards in order to do several things:

1) Dissociate relationship from multilateral or bilateral

2) Standards to connect disparate systems

scribe: it would be interesting if these different systems could use the same tools to operate

<Zakim> AdrianHB, you wanted to ask if the retail payment (as developed in the new WG) SHOULD be usable in b2b or other scenarios

AdrianHB: I want to build on what Cyril said...there are no standards for 4-party model...we are addressing to a certain extent in the new WG
... but I am wondering whether the scope of the new WG is such that the messages will be reusable.
... I don't think it's in the charter today
... How important is ISO20022 to all this?
... there are people saying it's very important (an flexible enough to achieve our goals) and yet there are also technology folks who do not wish to be encumbered in the same way

Cyril: I've been working on a presentation on 4-corner.
... what is difficult today is to organize the flow
... in the 4-corner model you have lots of different flows
... (request, response, forward, etc.)
... these could be addressed through ISO20022 or simpler
... to guarantee that the flow is a good one, to ensure you have audit trail, so far we don't have that.
... so we have the messages (so we can "talk") but we don't have everything that we need

CyrilV: This is the layer underneath what we are talking about; EPC calls this the operating model
... when the EPC works on an operating model, [/me missed it]
... but I think we could create similar flows for different use cases
... I think ultimately what we are missing is a layer for payments

<Zakim> Ian, you wanted to answer to Adrian

<AdrianHB> ian: Adrian asked if the WG messages can ebe xtended to other scenarios

<AdrianHB> ... I would be nervous to extend the scope of the WG

<AdrianHB> ... it may be useful as a learning exercise but we can't do too much in the first pass

Kris: ISO folks discussing the same questions that seem to be discussed here.
... e.g., we have methodology but not sufficient to do payments
... there are also questions about the scope of ISO work and the work of other standards
... APIs and so on cover more than just "the business payload" ...it contains security and other things not in ISO20022
... so it's important to understand where ISO20022 fits into the payment space (and what it does and doesn't do)
... e.g., Security is not covered in ISO20022
... on the other hand, 4-corner is covered (business process modeling)
... I think it's key that we establish what's part of ISO20022 and what's not...
... ISO20022 is not the solution to Web payments...but we need to figure out its relation to web payments

padler: What's perhaps missing is consistent account management
... it would be helpful to use account standard and account identity standards in an interoperable fashion
... I see the IG has having a role of establishing glue between things, e.g., open standards for identity and account

Vincent: Currently messages that have been defined are in banking space...banks and inter banking
... the way ISO20022 is structured, there are 3 main layers:

- business model (can cover any business functionality, including the business side of web payments...

scribe: web payments has two parts - technical and also business
... being on the payment side in ISO20022, most of the business things are covered.

Vincent: Second layer is logic layer
... third layer is implementation (e.g., XML for payment messages, but also ASN1 in card world)
... the technical standards could be extended to meet our needs

padler: I didn't meant to suggest ISO20022 is not applicable. Rather, the gap that I see wrt W3C is that there are topics like identity and credentials....
... we want to use standard that have already been developed (where we can)
... we should ensure that ISO20022 meets our use cases and develop out the protocols as needed

Vincent: I think that recently there was addition of ATM messages
... getting closer to web payments (closer than other inter bank)

padler: Question before us is - how does the web (outside of payments), and payments on the web, and ISO20022 integrate?
... for end users, you don't want to have to support multiple technologies if you can avoid it.

<aylcw3c> +1

padler: you'd rather like interop with other systems

Vincent: That's why I'm mentioning the card messages that were recently registered
... they looked into harmonizing identity management, input management, merchant management
... those were covered in those card messages
... so that could be a place where we should look into it for web payments, possibly reusing

<AdrianHB> +1 to ISO20022 education for the group!

dezell: +1 to getting better sense of ISO20022 in the group
... Question for banks - what kinds of additional services do they see going along with web payments?

IJ: E.g., like integration of mobile banking and payments?

dezell: Yes

<Zakim> AdrianHB, you wanted to ask if banks think W3C has anything to add in the interbank messaging space?

AdrianHB: I want to try to summarize some things that I'm hearing and relate it to the work of the WG
... and see if there's anything to talk about in the IG
... one of the ways that we've been discussing the WG work is in relation to the 4-corner model
... we've said that there is a lot of fiction in 4-corner between payer and payee
... today it's that interaction between customer and merchant that has security and friction issues
... in the WG we are attempting to address that.
... it's focused
... but in the bigger picture of the 4-corner model, if the other messages are ISO20022 and the operating procedures are standardized,

and we are using ISo20022 layer of technologies, it makes sense to understand in the WG that that is the context.

scribe: what I"m not clear about is whether banks should be looking to W3C to define anything related to interbank messaging
... ISO20022 seems to cover that. Are there gaps?

padler: Interbank messaging is just one thing we might look to standards bodies.
... but a lot of our technology stacks run on open web standards
... even if we don't go to w3c for interbank flows, we are still looking at browser standards or things interoperable outside of payments that we need to deploy to conduct business

<aylcw3c> +1 on banks joining

padler: I think we need bank input on topics like security
... That's an interesting perspective - part of the role of the IG is pushing information to the rest of W3C about bank needs

s/padlerl/Adrian

padler: Yes, we want these stakeholders to push requirements (of banks, PSPs, etc.) to the more general groups at w3c (e.g., security)
... that's not to take away work from other orgs, just to get stakeholder input into what w3c does

AdrianHB: I don't think that messaging has been loud enough
... to my mind, I've seen the primary role of the IG to gather people together to look at gaps

https://www.w3.org/Payments/IG/wiki/Web_Payments_WG_Charter_FAQ#What_will_the_Web_Payments_Interest_Group_do_now_that_there_is_a_Working_Group.3F

" Coordination role of payments conversations at W3C; "

" Further work on detailed requirements on messages, security, etc. These requirements will be provided as input to relevant groups; "

<padler> +1 to encouraging more payments and banking related companies to joining both the W3C and the IG to express standardization needs related to open web standards and efforts underway at the W3C

<AdrianHB> +1 to that role! (was lost by me in focus on forming WGs)

AdrianHB: Perhaps one reason we did not emphasize this messages is that our first focus was establishing the first WG and the next one

IJ: +1 to revisiting our larger role

Adrian: +1

<dezell> +1 to more bank participation.

aylcw3c: +1 to getting banks more involved to hear their requirements put to various other technologies

(Here's a potential question: QUESTION - Do you feel that it would be valuable to be able to contribute your requirements directly to the development of Web technologies?"

<AdrianHB> QUESTION: What about the Web is limiting in delivering products? (i.e. What makes you pick and app or native application instead of Web)

CyrilV: On the question of what banks want for the Web...we could imagine having everything on the web (including clearing, etc.)
... from my perspective, we see that our clients what more security than they have today
... security on both sides (even with 3DS the security is not generalized)
... there are also links to "after" and "before" payments
... payments don't happen in a void
... there are pre invoice, invoice, payment, delivery, etc.
... our clients need to have links between these different phases
... a full digital view

Amy: I'm early in the process; happy to listen in at this point. ETA Members include banks mostly on the acquiring side
... I'm still collecting data

IJ: can we reach out to those banks in ETA with our questions?

Amy: We have BOA Merchant services, Wells-Fargo, JP Morgan Chase...I'm happy to engage with them

Arie: Identity has been mentioned multiple times
... ISO20022 and its relation to the web

QUESTION: What about the Web is limiting in delivering products? (i.e. What makes you pick and app or native application instead of Web)

Adrian: In other words, what makes you pick a native app instead of a Web app?
... I think for banks, they don't make the connection between "we found a gap" and "we can help address the gap in a web standard"
... how do we ask the question to raise awareness about the breadth of the platform

<mtiggas> mtiggas +1

Adrian: I also think that one of the banking meetings I had last week...one architect said "any standards that come out now for the web will only be available in a year"

<Zakim> Ian, you wanted to steal from Cyril

IJ: Similar gap analysis type of question "To achieve 4 corner model on the web, what is missing?"

CyrilV: When we are talking about customer facing apps, we use the technology the tech people want to use.
... for the flows in other parts of the ecosystem, those are complex...and we could benefit from standards to enable interop among banks
... hence SEPA....it's complex to move when everyone has to act on the same day
... even if we see the gap, it's difficult at times to act.
... back to the question of 4 corner...I think it could be a real value add to the web to have the same flow management...and to secure the flow management
... not limited to the payment message

<mtiggas> mtiggas +1

CyrilV: we should have a standards to support 4-corner
... I could explain more deeply at TPAC

<aylcw3c> Cheers Ian

<AdrianHB> +1 for more discussion in TPAC

<aylcw3c> if reaching out to banks and asking to participate

<aylcw3c> how to reduce redundant built suystems

<aylcw3c> reduce one-off builds

<aylcw3c> Pat will jot down question on the wiki

Summary of Action Items

[End of minutes]

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