figo receives ZAG licence and enables ‘Licence as a Service’ through RegShield
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.
With RegShield, figo immediately takes on the burden of its partners’ licensing obligations
Young FinTech companies and traditional banks alike are already offering innovative services using figo’s technology. In order to continue to allow companies without their own BaFin permission to implement products and features requiring regulated account access or payment initiation, figo has developed RegShield. The ‘Licence as a Service’ model addresses two types of businesses in particular: small startups that lack the resources they need, and large companies that do not want to alter their already complex processes in order to secure a licence.
“figo can take over regulatory responsibility for account holders for ZAG services our partners want to integrate into their services,” explains André M. Bajorat, figo CEO. “With this product, our partners will not need their own PIS/AIS authorisation, so they can focus fully on the customer value of their innovative services.”
figo highlights regulatory focus at C-level through Chief Risk Officer
The regulatory requirements for figo as a payment institution not only require a great deal of effort for the licence application, but also continuous monitoring of operational processes and corporate development. In order to meet this challenge even better in the future, there was an extension of the C-level: Cornelia Schwertner assumed the position of Chief Risk Officer (CRO) in August 2018. She joined figo in April 2016 and led the licensing project as Head of Governance, Risk & Compliance. In her new role, she will oversee all regulatory compliance issues in corporate governance and strategic decision making.
“figo is convinced that regulating access to accounts creates trust among consumers, increases acceptance of open banking, and thus promotes innovation,” explains Cornelia Schwertner, figo CRO. “The ZAG licence allows us to be an even more reliable partner for banks, insurance companies and FinTech and InsurTech companies.”
Find out more about RegShield at: https://www.figo.io/en/regshield/
figo makes financial data from thousands of European financial sources easy and secure to use for your digital services – learn more about our products.
Find out more about figo and the team behind it here.