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PSD2 Compliant Software

Within the last year, there has been much said and a lot written about the PSD2 Directive and its impact on the FinTech sector.

In few words, PSD2 is a new  European directive with its main idea —  to make European banks share customer transaction and account data (where the customer has given their consent) with Third Party Providers that might include FinTech and retail businesses, telecommunications providers, payments services, and financial account aggregators.  Banks must foster an open and equal market, by allowing approved and licensed third-party providers to access customer accounts where the customer has granted permission. Banks cannot add additional fees on these providers, refuse them access (without a valid reason), or put them at the end of a priority queue.

But there should be a relevant tool to make such data exchange available. Therefore when we speak about PSD2, we always speak about open bank API.

Are European banks ready for that? Definitely not all of them.

SDK.finance as a European FinTech software vendor reveals the strategic options of partnering with banks over the course of PSD2 implementation, not only to make banks PSD2 compliant but to allow them to benefit from such compliance by providing great new services for their clients.

Alex Malyshev, CEO of SDK.finance, urges banks to think beyond the scope of PSD2 requirements and focus on customer needs.

“PSD2 alone will not transition banks into a digital era of banking. Banks definitely need to think about, as well, how to generate value in the open-banking era. And the answer is simple yet still beyond most banks’ comprehension: the customer is King. Now, more than ever before, serious steps should be taken to win customers’ hearts back amid the tough competition from Tech Giants and FinTech startups. Our goal is to help banks implement those steps and secure the leadership in the course of the digital transformation”.

SDK.finance offers banks three partnership options which imply the following roles:

  • Banking API provider
    • API aggregator
      • API app store

        SDK.finance acting as an API provider enables banks to quickly and securely create innovative products. The components of SDK.finance solution delivered via API include:

        API aggregation option allows banks to assemble multiple APIs at one point. But that would not be the whole story. The true value of open APIs lies in the creation of the new ecosystem of partnerships between banks and third-party providers.

        SDK.finance app store unleashes those opportunities, which can enhance customer loyalty and open new revenue sources for both banks and third-party providers. Customer-centricity, innovation, and speed become critically important, which means it is high time for banks to act.

        SDK.finance offers a solution compliant with PSD2 requirements:
        ParameterSDK.finance Availability
        Third party access to Payments (Transaction Requests)yes
        Third party access to Account information(Balances and Transaction history)yes
        Fees Transparency (Static Financial Product and fees information)yes
        Fees Transparency (Real time charges transparency during Transaction Requests)yes
        API versioningyes
        SDKs to aid developers and provide patterns for best practicesyes
        OAuth or other delegated authentication schemesyes
        Sandboxes both for internal and external teams and also in testing scenariosyes
        Fraud and penetration attempt monitoring (e.g. Spark) and strategies for containmentbase functionality
        Supporting tooling for developers and DevOpsyes
        Performance strategies to keep load from core banking (e.g. Caching with Redis)yes
        API Explorers so developer and business teams can discover and interact with the APIs in sandboxyes
        Documentation that can be used in API Explorers, REST clients and SDKs in a common format (e.g. Swagger)yes
        Unique IDs (e.g. Bank ID, Account ID, Transaction ID)yes
        Flexible entitlements to support increased data sharing and transparency requirementsyes