It is only six (!) months until 14 September 2019, the day the Regulatory Technical Standards (RTS) of the European Banking Authority (EBA) on Strong Customer Authentication (SCA) and communication, i.e. the communication between banks and third party providers under the PSD2, must be applied. One focus of the ongoing discussions in the market is the PSD2 interfaces to be expected by then. In February I was invited to participate with other market representatives in a BaFin workshop discussing the status quo. My main conclusion: We now have to shift the last open issues from the conference table into the heads of our developers.
Via Passporting, the company is preparing for the Europe-wide rollout
For three months, Hamburg-based FinTech figo has been a payment institution supervised by BaFin, permitted to offer account information (AIS) and payment initiation services (PIS) – to date the only company in Germany with such authorisation. In the context of the licence, the company has been granted permission to offer a ‘licence-as-a-service’ model: figo RegShield makes it possible for partners to offer their services without having their own registration or licence from BaFin, despite PSD2. In early November 2018, the product went live, with third-party vendors already using the capabilities of RegShield and the first PSD2-compliant services in Germany being conducted with figo.
More than two years ago I started a blog and shared my experiences with other third party service providers, what it means to adjust to the new PSD2 obligations. Among other things, I explained in three parts from June 2016 to September 2016 what is important for the remaining preparation time until a BaFin licence application. Where do we stand now?
Let’s talk about how to use innovative FinTech solutions under PSD2 for the greater good for the consumer!
The guests of our 11th episode of ‘figo talks PSD2’ are Jana Koch (Head of Start-up Garage | comdirect) and Nadja Schlössel (Head of Product Strategy | figo). They focus on the effects of PSD2 from the consumer’s point of view.
What are the potential risks and opportunities, being born out of Open Banking? How will PSD2 enhance the competition and change the landscape?
Let’s talk about how Open Banking will change the world!
In the 10th episode of ‘figo talks PSD2’ we are talking with Ashley Groom (Global Expansion | GoCardless), Duncan Barrigan (Head of Product Management | GoCardless) and Nadja Schlössel (Head of Product Strategy | figo). Tune in and stop the confusion with different understandings of Open Banking!
We are talking about:
“Is there a right to credit?”, Maria Lissowska (Senior Expert, European Commission) asked at the beginning of the “Panel 3 on Credit”. Well, obviously there’s no written right to credit, but it’s also obvious that the opportunity for a credit is a big contributor to financial inclusion. However, the opportunity for a credit depends largely on the consumer’s creditworthiness. The question should therefore be in the future, how can creditworthiness be reflected by the financial reality of the credit applicant and thus promote financial inclusion?
Instead of often incomprehensible and intransparent credit scores for consumers, banking data itself provides the necessary data for the evaluation of creditworthiness. Because in the sense of data minimisation, the question should be which data is actually needed for the credit decision. Furthermore, the financial reality of a credit applicant is not correlated to market data as the basis for credit scores because every single person applying for a credit is an unique case.
Go! – Parliament and Council should approve provided RTS
It’s almost done! On Monday this week, the European Commission submitted the Regulatory Technical Standards (RTS) for approval by the European Parliament and Council. figo generally welcomes the latest version with regard to the outcome on XS2A communication under PSD2, even if the devil is in the details once again. Any lingering issues – which we will further outline below – should not become deal breakers and the Parliament and Council should give their approval. We think that these last hurdles can be properly solved by the EBA and national authorities, if they plan their practical involvement wisely now. (more…)
Click on the pic to get the brand new, third update of ‘RTS Change Log’!
Now it’s almost done! The European Commission submitted the Regulatory Technical Standards for approval by the European Parliament and Council. Subject to the scrutiny period of three months, the rules will be published in the Official Journal of the EU and payment service providers will have 18 months to put the measures and tools in place.
In order to enable you to keep track of the financial changes, figo shares the third ‘RTS Change Log’ version with you! Simply click on the image!
We love to make your life easier by means of our technology and information on the related topics. So sharing our progress in keeping track of the changing requirements of relevant banking regulation feels like the right thing to do for us. Enjoy the convenience!