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?
Hamburg FinTech is a payment institution regulated by the BaFin in accordance with PSD2
As of 16. August 2018, it’s official: figo GmbH is now a regulated institution under the Payment Services Supervision Act (Zahlungsdiensteaufsichtsgesetz – ZAG), granting figo authorisation by the Federal Financial Supervisory Authority (BaFin) to provide payment initiation (PIS) and account information services (AIS), which have been regulated since the beginning of the year.
At the end of 2015, figo set its focus on fulfilling regulatory requirements as soon as the new licensing requirements for the Payment Services Directive 2 (PSD2) became known. This licence as a payment institution is the natural consequence of a consistent focus on security, transparency and compliance. figo saw early on that the consistent rules offered by the regulation were an opportunity not only for their own business model, but for the entire industry, leveling the playing field.
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?
The Bankathon reaches half a dozen! The sixth edition of the FinTech- and banking-related hackathon will take place from 27 to 29 August 2018 in Frankfurt am Main, this time as part of the Handelsblatt Conference “Banking Summit”. The Bankathon brings together representatives of banks and FinTech, developers, industry experts and other interested parties. Based on prototypes developed there, they experience where the “open banking” journey, driven by the PSD2, can go. As an independent platform, the event is the perfect place for open exchange – free of any silo mentality. This is proven by the success it’s already had: after five events, a network of more than 1,000 developers has now been created around the Bankathon, and more than 400 participants have so far programmed around 100 creative solutions.
20 teams, 30 hours, €15,000 prize money
Whether individual developers, prospective founders or entire teams of startups and established companies – everyone is welcome and can prove their creativity in one of the themed tracks which debuted in Berlin and generate a variety of ideas and high-quality prototypes. The framework for the tracks is provided by the PSD2, which is also the topic of the partnering conference, “Banking Summit”. “Both events complement each other perfectly,” explains André M. Bajorat, figo CEO and Bankathon founder. “While experts at the conference are discussing how banks and banking will change in the future, teams at the Bankathon are developing implementation options for it in practice.” Exactly 30 hours are available to the participating teams to implement their ideas in the Frankfurt FinTech hub TechQuartier. The winners can look forward to a total of €15,000 in prize money.
Deutsche Börse Group and its post-trade services provider Clearstream will partner with Germany-based FinTech figo and Luxembourg-based RegTech start-up Finologee to create a common FinTech Acceleration Platform. The launch is targeted for the fourth quarter of 2018, subject to regulatory approval.
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:
With RegShield, figo plans to help third parties with new authorisation requirements
13 January 2018 was the day that the PSD2 became a reality and thus EU member states must comply. In addition to this, BaFin confirmed it on 5 December 2017 as part of the conference “Payment services in the field of digitalization and security needs”: ‘Licence as a Service’ models are basically possible under the Payment Services Directive 2 (PSD2)! This means: companies that offer or use payment initiation and account information services (PISP/AISP) today can also seek a regulated partner for this purpose under certain circumstances. For 2018, figo is aiming for its own payment institution licence (PISP and AISP) and plans to be a reliable ‘Licence as a Service’ partner in the market with the service product ‘RegShield’. figo partners will not have to apply for their own authorization! (more…)