This partnership is part of Okta's plans to develop the portion of its identity management business aimed at the general public.
Okta partners with Cloudentity, a company specializing in identity authorization and API governance, to serve the growing open banking market with Zero Trust authorization services. Open banking is a booming concept around the world. It allows third-party developers to access a consumer's banking data through APIs, so they can deliver new financial services and tools - such as the Venmo mobile payment service or SoFi's online finance tools.
To make it easier to open banking services, Okta this week reported using Cloudentity's Dynamic Authorization technology to automatically integrate APIs and cloud services into the Okta Consumer Identity and Access Management (CIAM) ecosystem - read CIAM and cloud: what changes the acquisition of Auth0 by Okta for identity management ). APIs and services will thus be protected by dynamic access control policies designed for highly regulated industries such as finance.
Both companies make the integrated product available to the Dynamic Authorization Open Banking Sandbox, which provides a reference architecture and infrastructure for enterprises deploying API-based services. Thanks to the Sandbox, companies can manage user consent, authorization, and data flow in real-time.
The open banking market The open banking market generated $ 7.29 billion in 2018, according to a report released last year by Allied Market Research, and is expected to reach $ 43.15 billion by 2026. America's Nord accounted for more than two-thirds of the global open banking market share in 2018, and Allied estimates that it will maintain its leadership position until 2026.
While open banking is becoming more widespread in the United States, it is more heavily regulated elsewhere. Europe, for example, implemented the Payment Services Directive 2 (PSD2), while Australia officially launched Consumer Data Law (CDR) last year with open-type requirements. banking for financial service providers. Brazil, meanwhile, has recently started to implement its nationwide open banking initiative, which requires the participation of all large and medium-sized Brazilian banks with a significant international presence. The initiative, led by the Central Bank of Brazil, is part of the country's larger program to modernize the national financial ecosystem.
The open banking market offers a growing source of potential income for Okta as it strives to grow its CIAM business. As part of this, Okta announced earlier this month its intention to acquire Auth0 , an identity platform for developers, in a stock transaction valued at around $ 6.5 billion.