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Opium.PSD2™

What is PSD2?

​PSD2, which came into force in January 2018, regulates payment services and payment service providers throughout Europe. The goal is to allow third parties to access client data (Upon approval) to provide value-added payments and banking services. Under the implementation process, financial institutions will have to propose their open Application Programming Interface (APIs) to third-party providers (TPPs).

History: Payment Service Directive

Our executive brief on PSD2 and Open Banking.

What could the new wave of competition bring to the financial sector?

Strong Customer Authentication (SCA)

 Security is paramount and the PSD2 framework calls for strong customer authentication. Maintaining an API is a challenge for financial institutions with minimal technical expertise. From a banker’s perspective, PSD2 results in additional costs, exposure to the competition and security risks.

Collecting Financial Data

The directive places an obligation on banks to provide their customers’ financial data to authorised TPPs (Third Party Providers) when a customer wishes to pay from their bank account via a payment initiation service provider (PISP) or simply grant permission to access that data through an account information service provider (AISP).The directive places an obligation on banks to provide their customers’ financial data to authorised TPPs (Third Party Providers) when a customer wishes to pay from their bank account via a payment initiation service provider (PISP) or simply grant permission to access that data through an account information service provider (AISP).PSD2 places an obligation on banks to provide their customers’ financial data to authorised TPPs (Third Party Providers) when a customer wishes to pay from their bank account via a payment initiation service provider (PISP) or simply grant permission to access that data through an account information service provider (AISP).

Third-Party Providers

There is very little preventing a bank from becoming a TPP. Issuing a TPP licence to a bank is almost a formality, since banking activities cover the vast majority of TPP functions in the field of banking and finance. Operating as a TPP, banks can connect to their competitors and gather transactional information from their customer base.There is very little preventing a bank from becoming a TPP. Issuing a TPP licence to a bank is almost a formality, since banking activities cover the vast majority of TPP functions in the field of banking and finance. Operating as a TPP, banks can connect to their competitors and gather transactional information from their customer base.

With Opium.PSD2™, we make it easy so you can avoid the hassle

Sandbox: We manage all aspects of the Sandbox for you in the form of a Business Process as a Service. We provide all the technical and secured infrastructure and take care of the TPPs' testing and integration processes, from documentation supply to technical support.
Livebox: Once a TPP is ready, our dedicated Sandbox platform informs you and automatically publishes all the necessary technicalities to your "On-Premise" Opium.PSD2 platform.

Opium.PSD2™ intensively uses Robotic Process Automation (RPA)

 Thanks to its smart engine that automates workflows and that complies with Berlin-Group standards, Opium.PSD2™ solution tremendously decreases TPP support as well as web service publications.
 
PSD2 should not be perceived as a competitive risk, but as an opportunity to also become a TPP and therefore offer added-value services to existing and potential customers.
When bundled with Opium.eBanking™ suite, existing OeB clients can immediately take advantage of the opportunity by giving their clients access to new added-value services while retaining ownership of the primary relationship.
Need more details? Contact us
We look forward to hearing from you!