New services with PSD2
European banks face a new challenge: the financial system will become more open. The EU and many banks are pushing this development with the new Payments Service Directive 2 (PSD2), which will come into force in 2018. Banks need to adapt to these changes that open many technical and strategical opportunities. CoCoNet’s PSD2 solutions allow banks to easily meet the requirements, to create new services and to define new strategic roadmaps for future market positioning.
The new directive PSD2, which is supposed to create more transparency and competition in the market, forces banks to install processes and open APIs that allow third parties to access the data of their customers. The PSD2 directive obliges banks to allow third parties to perform payment initiations and use account information services on behalf of the customer.
However, based on the PSD2 API banks can also create new service offerings, for example, to provide multibank account information beyond the current reach of EBICS.
Customers can get consolidated account information in one place, for example with CoCoNet’s PSD2 front-end. This will be the basis for EU-wide liquidity planning processes and a true advantage in corporate banking for international acting companies.
The enabler helps banks to quickly meet all legal requirements of the PSD2 Directive. It provides a publicly accessible PSD2 API, which grants Third Party Providers (TPP) access to Account Information Services (AIS) and Payment Initiation Services (PIS). The system enables the secure connection to the internal bank systems for fetching and providing the required data, handling of connectivity data and certificates for TPP validation as well as logging and auditing processes.
With the hub, banks can offer TPP services themselves. It connects and unifies numerous external PSD2 APIs and effortlessly supports multi-banking capabilities for bank channels via an integrated unified front-end API. The central hub can be connected with numerous API sets – the unifying approach reduces the complexity of integration and maintenance, and saves costs in development and operations.
New services allow new business models. The MULTIVERSA PSD2 Solutions can be enhanced to provide further value to the customers. From front-ends, that provide all user-related interactions, to data storage. For example, the PSD2 front-end widget enables comfortable multi-banking functionality, like
- Fetch balances via PSD2 from other banks e.g. to provide their corporate customers with multi-banking statements.
- Use payment creation functionality to initiate payments for accounts with other banks via PSD2, for example, for cash pooling activities.
- Support authentication and authorisation purposes based on the established security procedures.
- Perform the authorisation check on submitted payments.