The Berlin Group has published the latest version of its framework designed to give Third Party Providers (TTPs) API access to bank accounts in compliance with PSD2.
The revised Payment Services Directive came into force on 12 January 2016 and for most of the provisions, member states had until 13 January 2018 to implement them into national laws. The regulation introduces new ‘payment initiation and account information services’, operated by regulated TPPs.
In a Joint Initiative together with additional banks and payment associations, the Berlin Group has worked on a detailed ‘Access to Account Framework’ with data model and associated messaging, based on the EBA Regulatory Technical Standards.
Last year, the Berlin Group outlined plans for its NextGenPSD2 Initiative to help overcome the emergence of multiple competing mechanisms in the market by providing a harmonised API standard for accessing bank accounts.
Version 1.0 of NextGenPSD2 claims to offer a “modern, open, harmonised and interoperable” set of APIs as the ‘safest and most efficient way’ to provide data securely, according to the company.
The NextGenPSD2 Framework promises to reduce XS2A complexity and costs, addressing the problem of multiple competing standards in Europe and, aligned with the goals of the Euro Retail Payments Board, enables European banking customers to benefit from innovative products and services by granting TPPs safe and secure access to their bank accounts and financial data.
The APIs support the PSD2 required account information, payment issuer instrument and payment initiation services and are built on RESTful, OAuth2 and JSON standards, relying on ISO20022 standards for the data elements to be exchanged.
With PSD2 implemented last month, the financial services industry has been scrambling to provide compliant service. Earlier this month, German challenger bank Penta has closed a €2.2m Seed financing round, just a month after it launched in Germany. Following the fundraise, cofounder Luka Ivicevic told RegTech Analyst the regulation was a way to fix ‘broken banking’.
Bank of America Merrill Lynch prepared for the Payment Services Directive 2 (PSD2) by launching an application programming interface (API) gateway last month. Its new API gateway will facilitate connectivity into existing treasury management, enterprise resource planning (ERP) and other third-party services for its corporate clients.
Copyright © 2018 RegTech Analyst
Copyright © 2018 RegTech Analyst
