Open Banking – Register with the FCA as an AISP or PISP

In August 2016, the UK Competition and Markets Authority (CMA) issued a ruling that required the nine biggest UK banks – HSBC, Barclays, RBS, Santander, Bank of Ireland, Allied Irish Bank, Danske Bank, Lloyds and Nationwide – to allow licensed startups direct access to their data down to the level of account transactions.  Open banking has led to a raft of new financial technology products and companies. The term Open Banking refer to the following:

 

  • The use of open application programme interfaces (APIs) that enable third-party developers to create apps and services around a financial institution.
  • Increased and secure financial transparency for account holders.
  • The use of open-source technology to achieve the above.
  • Open banking Ltd, a non-profit created to facilitate for the task.

The New Jargon

TPP – Third party payment service provider

A payment institution which does not hold payment accounts for its customers and provides payment initiation and/or account information services. It can act as:

AISP

Account information service provider

Aggregation of online information for multiple payment accounts in order to offer a consolidated view of finances and avoid multiple website visits and logins

PISP

Payment initiation service provider

Facilitation of online banking to make a payment

ASPSP

Account servicing payment service provider

Responsible for maintenance of the customer’s payment account, The ASPSP must provide the AISP or PISP with a secure communication channel allowing access to the payment account if the account holder has authorised it.

If you are a financial services company that may benefit from assistance with compliance or you wish to obtain permission to become a TPP, Take advantage of one free hour of consultancy today.

Let’s have a conversation

    AuthoriPay Ltd, Milton Hall, Ely Road, Cambridge, CB24 6WZ