Open Banking has transformed the way financial institutions and third-party suppliers engage with customer data. While the potential for innovation is enormous, worries about data security and privacy remain at the forefront. Many Open Banking APIs are now offered through SaaS platforms or gateways. SaaS systems are straightforward to use, but they frequently fall short when it comes to storing sensitive financial data.
The Challenge : Protecting Sensitive Financial Data
Standard SaaS or gateway solutions may unintentionally expose sensitive information, such as IBAN numbers found in account statements or during payment initiation, to possible security risks. These solutions rely on third-party infrastructures, which have various issues.
- Increasing the risk of breaches.
- Adding layers of complexity to compliance with stringent data protection regulations like GDPR.
A Exthand : We reinvented Security with Docker Containers
Exthand believes that financial data requires a security architecture that goes beyond the traditional SaaS model. That’s why we’ve devised a novel way to Open Banking security: using Docker containers for critical data processing and storage.
Docker containers provide a safe, isolated environment, which minimises many of the dangers associated with standard Open Banking APIs. By employing this technology, we’ve implemented an additional layer of security that puts control back into the hands of our clients.
How does Docker Containers secure the Open Banking API?
Containers keep the API and its dependencies separate from the underlying host system and other containers, reducing the possibility of illegal access or resource interference. Each container operates in its own lightweight, sandboxed environment, so even if one is compromised, the impact on the system or other services is minimal. Furthermore, Docker lets developers define:
- Fine-grained permissions,
- Network controls,
- And resource limits which are critical for safeguarding sensitive financial data in Open Banking.
Features like image signing and scanning helps guarantee that only trustworthy and vulnerability-free images are deployed, further increasing security. When paired with measures such as monitoring, encryption, and secure API authentication (e.g. OAuth 2.0), Docker containers help to provide a robust and reliable architecture for hosting Open Banking APIs.
Why Are Docker Containers a Game-Changer for Open Banking Security?
Here’s how leveraging Docker containers enhances security in Open Banking:
- Execution Within the Client’s Environment
The containerised solution operates directly within the client’s infrastructure, eliminating reliance on third-party platforms for hosting or storage.
- Autonomy in Securing Infrastructure
Clients have complete control over their environment, ensuring that security policies and settings meet their expectations. This independence reduces the possibility of external breaches and platform-wide vulnerabilities.
- Data Never Leaves the Client’s Infrastructure
Unlike typical SaaS models, Exthand’s solution ensures that sensitive data never passes through or lives in its system, providing unrivaled data privacy.
- Total GDPR Compliance
By localising data processing inside the client’s environment, our solution ensures complete compliance with GDPR and other data protection rules, ensuring peace of mind.
- No Risk of Provider Infrastructure Hacking
Traditional SaaS providers are appealing targets for hackers due to their centralised data storage. Our Docker container concept eliminates the possibility of a single point of failure compromising critical information.
- Eliminating Downtime Dependencies
Client infrastructure uptime becomes the single element determining data availability, removing dependency on the Open Banking provider’s systems.
The Future of Open Banking Security
Exthand’s Docker container solution marks a significant leap in Open Banking API security. By addressing the risks inherent in SaaS models and promoting client autonomy, we ensure that sensitive financial data is kept safe, confidential, and fully compliant.
If you’re an IT architect, tech developer, or API product manager seeking for the most secure Open Banking solution, it’s time to reconsider old ways and learn how Docker containers may give ultimate data protection.
These threats highlight why security in Open Banking is of paramount importance and why continuous innovation in security practices is necessary.
