How British fintech startups prepare for an open bank

How British fintech startups prepare for an open bank

With the new PSD2 regulations and Open Banking in the United Kingdom in 2018, new regulations have come into force in Europe. Large and small financial service providers – from multinational banks to agile companies – examine opportunities and opportunities These new regulations create risks.

Open Banking requires that banks access their customers’ financial data through trusted third-party application programming interfaces (APIs). This will move from one-stop financial services to more open platforms, where consumers will develop a modular approach to banking and give new innovative financial technology companies the opportunity to give consumers better ways to manage their finances. on-line. ,

The big banks are having trouble satisfying the rules quickly by opening their APIs, but also using the new open landscape to differentiate themselves from their competitors and avoid being bitten by these fintech startups.

Take HSBC UK, which launched the PSD2 in May with the launch of a Connected Money App in May. Customers can see all their accounts on one screen, even if they are at a competing bank.

British banks like Monzo and Starling, but also some other fintech startups listed below, have been working on the idea of ​​an open bank for some time. So they think they are taking full advantage of the open banking system …

Popular challenger bank Monzo has published an “open API” for the open bank providing access to third party companies authorized by the Financial Conduct Authority (FCA) as an Account Information Service Provider (AISP).

According to a blog post by Simon Vans-Colina, an engineer at Monzo, the new API, which they call the AIS API, “will be made available to some companies that have been granted AISP approval.

“Competing businesses must demonstrate compliance with PSD2 regulations, including the rules for securing and protecting your account and data, and use their access only for the service you request.”

Vans-Colina explained that the Monzo API has “two functions” so far: run the main application and allow the developers to rely on Monzo’s main banking platform.

The AIS API now allows this trusted third party to access a list of accounts, account balances, and account transactions.

Monzo is currently working on a second version of this API that will provide developers and third parties with a much more comprehensive and complete API, “wrote Vans-Colina.

This should include features such as payments, updating, and creating feed items, as well as full access to a customer’s data and accounts.

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