We are pleased to announce that The Hokkoku Bank, Ltd. (Hokkoku Bank), a group company of Hokkoku Financial Holdings, Inc., has chosen Authlete to implement FAPI, a global open standard for advanced API security, in launching its Banking as a Service (BaaS) business.
To develop better financial services and enhance the efficiency of bank operations, Hokkoku Bank initiated a project in January 2023 to build a multi-cloud, next-generation regional digital platform with full-cloud financial service functionality. As part of this initiative, Hokkoku Bank announced the launch of its BaaS business in July 2024. The BaaS platform will provide banking functions through APIs in stages, enabling companies to integrate capabilities such as account opening, transfers, account inquiries, and user authentication. This allows non-bank entities, including fintech companies, to embed banking functionalities into their services.
To modernize its systems and swiftly deliver highly convenient services, Hokkoku Bank has adopted agile software development methodology and is promoting in-house development and operation. To address areas where it lacks know-how, Hokkoku Bank is actively collaborating with external specialist partners to expedite product release and strengthen internal capabilities for development and operation. Since the implementation of FAPI, a globally adopted standard in high-security industries such as finance and healthcare, requires considerable expertise and time, Hokkoku Bank chose to adopt Authlete for its proven track record of serving major digital banks both within and outside of Japan.
Atsushi Shintani, Executive Officer and Director of Information Systems Department at Hokkoku Bank, explained the reasons for implementing FAPI and adopting Authlete, as well as the associated benefits as follows:
FAPI, a standard specification for API authorization, is widely used globally, and the number of service providers supporting FAPI is also increasing in Japan. We recognized that it was essential to include this security profile as a standard feature of our BaaS platform to enable various businesses to utilize it, including fintech companies, and to foster collaboration with innovative companies both in Japan and abroad.
In implementing FAPI, we decided early in the project to use Authlete due to its FAPI-certification, proven track record, flexibility, and ease of integration into our BaaS platform. As a result, we were able to streamline the implementation process and launch the BaaS platform quickly, which is a significant achievement.
Going forward, we will continue to expand the functionality and improve the services of our secure BaaS platform, which incorporates high quality, FAPI-compliant Authlete.
Takahiko Kawasaki, Representative Director of Authlete, said the following:
“We are honored that Hokkoku Bank has chosen Authlete to build its BaaS platform. We remain committed to ensuring high security and interoperability by adhering to the latest advanced API security standards. Furthermore, through the consistent delivery of reliable services, we aim to support the continued progress of Hokkoku Bank’s next-generation regional digital platform project and contribute to the growth of Japan’s financial industry and the advancement of financial services.”
Authlete is a backend service that provides the core functionalities of OAuth 2.0 and OpenID Connect, global open standards for API security, through web APIs. It integrates seamlessly with existing applications and user authentication systems across any programming language or framework, offering maximum flexibility in digital service development and accelerating time-to-market. The latest version, Authlete 3.0, enables the configuration of detailed FAPI compliance levels, including FAPI 2.0 Message Signing to achieve non-repudiation. To learn more about our solutions and customer success stories in the financial industry, click here.