In a bid to ensure third parties are able to make the most of PSD2, German banking service provider figo has launched its new “Licence-as-a-Service” (LaaS) solution.
The solution, dubbed RegShield, enables the company to serve as a regulated partner for firms looking to offer or use payment initiation account information services (PSIP/AISP). It allows figo’s partners to operate without having to apply for their own authorisation.
Prior to the PSD2 deadline earlier this month, Cornelia Schwertner, head of governance, risk and compliance at figo said: “Implementation of PSD2 is imminent and the licence application period for companies is tight. So it is particularly alarming that many companies do not even know that they will soon be subject to authorisation, let alone when.”
PSD2 is causing issues for both start-ups and more established players. For small business like FinTech startups, the process of securing a BaFin permit from the German regulator can put a strain on its financial resources and its time. Large companies, on the other hand, are faced with the difficulty of adapting internal processes to new regulatory requirements as a whole, or of delimiting supervisory-relevant parts in an acceptable manner.
As a service provider, figo wants to ‘take responsibility for all relevant processes and permit requirements’, giving certain third parties the freedom to focus on their core products.
RegShield will provide PSD2-compliant customer processes, execution of internal audits to prepare for external examinations, setup of governance and security policies, management of security incidents, regulatory and compliance expertise, outsourcing controlling and business continuity management.
In Germany, figo’s offer is aimed at companies that have to apply for a license as ZAD or KID according to the Payment Services Supervision Act (ZAG). Only then will they be able to offer their services in their usual form from the beginning of 2018 (or from the end of 2019, if they were active before January 2016). This is where figo’s RegShield can help.
Copyright © 2018 RegTech Analyst
Copyright © 2018 RegTech Analyst
