With the purpose of enabling innovation and facilitating competition, PSD2 has been described as the directive that will revolutionize banking and finance. The directive puts new technical demands on banks. Complior provides hosting services to a company that has developed a PSD2 ecosystem to help banks meet the requirements.
PSD2 opens up the market
In recent years we have seen the emergence of new payment methods, and a growing number of companies offer financial services. The European Banking Authority (EBA) issued the PSD2 (Revised Payment Services Directive) in response to the growing number of fintech companies and innovative payment solutions. The directive opens up the market, giving more players the opportunity to offer consumers new and innovative products.
PSD2 means that banks are required to provide third party providers with access to customers’ bank accounts, as well as allowing them to use the banks’ infrastructure as a platform for their financial services. This is done by building open APIs.
The new payment services directive brings a number of challenges for banks. PSD2 opens up for more players to compete with banks, which means increased demands on the availability and security of financial services. Banks also face technical challenges, as they must create the technical conditions to give fintech companies and PSPs (Payment Service Providers) access to their data.
What is an API?
API, Application Programming Interface, is a protocol that
specifies how different programs or applications can communicate with each other. It is a set of instructions by which you can access web-based applications or tools.
PSD2’s requirements for open APIs allow financial actors to exchange information about, for example, transactions.
New conditions for players
The Payment Services Directive requires European banks to open up their platforms and provide data to third party providers through open APIs.
Third party providers
Third party providers have had difficulty competing with banks, as many of their services require direct access to consumer bank accounts. PSD2 enables third party providers to access users’ bank data and financial information.
PSD2 gives consumers more options when choosing financial service providers, and one now has the opportunity to use other players than banks to for example pay bills.
A solution for PSD2
An international IT and management consulting company had developed an ecosystem for PSD2. They were looking for a Swedish hosting provider to provide a secure platform for the product.
The company has created a solution that allows banks to provide open interfaces to customer data. The API solution for PSD2 with dedicated APIs enables secure access to the banks’ various financial functions as well as customers’ bank accounts. The product solves many of the technical challenges that the PSD2 brings to banks, fintech companies and PSPs, and facilitates the implementation of the directive.
Ready-to-integrate open interfaces are a big cost saver and time saver for banks. This allows all stakeholders to focus on their core businesses.
The requirement from the consulting company was that the solution should be hosted in an incredibly safe IT-environment in Sweden. With a security focus, a PCI DSS-certified technical platform and infrastructure in some of Sweden’s safest data centers, Complior became the obvious choice.
Secure hosting for API systems
Complior provides a technical platform for the company’s API solution and delivers secure infrastructure. This includes servers, WAF (Web Application Firewall), network, load balancing and log management.
High availability and a secure IT environment are critical to the company’s API solution. Our PCI DSS certified platform guarantees the highest level of security of sensitive information. With a redundant architecture in disaster-proof data centers in Sweden, we can minimize downtime.
Complior’s secure infrastructure ensures high availability and that the customer’s solution works 24/7/365. This allows banks and other financial players to meet the requirements of PSD2.