Regulation is usually about tighter control. The Payment Services Directive II or PSD2 is different. It’s about creating new opportunities. It’s about opening up the payments infrastructure and liberating customer data assets to offer your clients new options and services, delivered by a wide range of third parties.

PSD2 compliance is mandatory, of course, and the final deadline is September 2019. But banks that see the technical challenges and new competitors as a threat, rather than an opportunity, are being unduly pessimistic.

Open banking will create new ways of serving and engaging with your clients, generate new revenue streams and give consumers and savers the kind of choice and flexibility they have come to expect in every aspect of their lives.

What will PSD2 mean for your bank?

PSD2 is designed to provide transparency and give consumers the option of sharing their bank account data with other banks, fintechs – maybe even telecoms companies, utilities and retailers – in order to take advantage of useful and relevant services.

The real issue for every bank is not compliance but the significant time, planning and effort that will be needed to make PSD2 work to your advantage. This will include ensuring:

  • flexibility and scalability to support an unspecified number of possible providers
  • support for API standards, hosting and operations
  • 24/7 availability
  • security, privacy and customer consent
  • robust authentication systems

Learn more about PSD2 and open banking

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Everything you need for Payment Services Directive II (PSD2)

Making the most of PSD2 and making sure you are 100% compliant needn’t be difficult. Avaloq has done the hard work for you, so you have two good options to choose from. You can go for our ‘as a service’ model, where we take care of everything, running your operations to comply with PSD2 and providing you with all the tools needed to easily manage all your third-party providers. Or you can simply select the service components and API software elements you need to handle everything yourself.

Our PSD2 solution set for 2019

Adding to our existing UK open banking solution

  • Hosted APIs and security with PSD2-compliant APIs providing access to client account data and enabling payments with secured authentication, audit and API management services
  • Effortless client consent management via our web-based solution
  • Support services for third-party providers’ API integration into the Avaloq Banking Suite
  • Hosted third-party provider (TPP) management to manage the lifecycle of TPPs from onboarding to closing
  • Full documentation for account information service providers (AISPs), payment initiation service providers (PISPs), payment instrument issuer service providers (PIISPs) and for the bank’s customization experts
  • Avaloq’s hosted testing facility for third-party providers, enabling them to test their software
  • PSD2 open API software for banks that choose to host and run the APIs on their own premises

Accelerating open banking beyond PSD2

Open APIs play a key role at the heart of PSD2 compliance and open banking. Our strategy is to open up the core banking platform through a broad range of REST APIs that create flexibility for both banks and fintechs.

With more than 150 API endpoints in place at the end of 2018, we are already supporting ten different BIAN domains, including accounts, payments, portfolio analysis and robo-advisory, growing and expanding that number every month.

PSD2 & Avaloq: How to capitalize on the new open banking era?

Take a deep dive into Avaloq’s comprehensive solution for PSD2. Explore how Avaloq’s solution enables banks and wealth managers to be compliant with PSD2 and how the solution can provide the foundation for new API-based business opportunities.