Category: MOBILE BANKING
The entry into force of the European directive on payment services on January 13 requires banks to open to fintech. But some are more advanced than others.One question is on everyone's lips - FinTech: "will the banks be ready for DSP2?" The European Payment Services Directive comes into force on January 13th. At this date, banks will be able to offer APIs to allow third parties, including fintech, to connect to their payment systems. But this is not mandatory until September 2019, to allow banks and fintech to test APIs . Some European institutions will however be ready or at least well advanced by January 2018.The prize for open banking is awarded to the Spanish bank BBVA. Last May, the second Spanish banking group launched a platform gathering seven APIs that give access to data related to the current account , payment, credit ... Since then, three other APIs have been added including one concerning Alipay, a Chinese wallet that has more than 450 million users. BBVA has also made available four APIs in the United States and plans to launch them in Mexico and Turkey. According to the bank, the exploitation of this data would make it possible to offer new personalized services to the consumer such as instant credit validation or direct verification of his identity. Contacted, the Spanish bank did not respond to our request."HSBC has accelerated on the subject of open banking for over a year including modernizing its core banking platform"Another bank says that open banking is a priority: HSBC. "We took into account the phenomenon of open banking about two or three years ago, and we have been accelerating on this topic for more than a year, notably by modernizing our core banking platform (the account management platform, Ed. In the end, this will enable us to connect more quickly to external players such as fintech via APIs ", explains Sébastien Guillo, Head of Strategy and Innovation at HSBC France.”The vision between fintech and banks is different, everyone has their own interests, our goal is not to break the competitive game but rather to satisfy our customers and to be in compliance with the regulations," he added.The UK bank has already set up APIs in its corporate client bank. "They allow us to connect to third parties such as marketplaces, accounting software or billing because it makes sense for our customers," said Rémi Bourette, director of investment innovation at HSBC. The establishment also launched a portal dedicated to developers at the end of 2016 in which APIs relating to the rental of counters and branches are available as well as information on products intended for private and professional customers (current account, loan, credit card, etc.).These APIs are not yet adapted to the DSP2 but HSBC ensures that it is in the pipes. "We have the objective of respecting the deadlines but we will still have worked in 2018 to build in detail the technical specificities related to this regulation," said Sébastien Guillo. "DSP2 forces us to open-market with more precise standards," added Rémi Bourette.Several banks, an APIHSBC is also part of Open Banking, a UK initiative created in September 2016 by the Competition and Markets Authority (CMA), the equivalent of the French Competition Authority. This project is part of the open banking reforms carried out in the United Kingdom for several years. "The English regulator wants to make the market more competitive," says Rémi Bourette. The country's nine largest current account institutions (AIBG, Bank of Ireland, Barclays, Danske, HSBC, Lloyds Banking Group, Nationwide, RBS and Santander) co-financed the creation of this private entity, overseen by the CMA, Treasury and the Financial Conduct Authority, the UK's financial regulator.As its name suggests, this initiative aims to organize the sharing of banking data in the country. In March 2017, APIs for products, agencies and ATMs were posted on the initiative's website. Then in July, those on financial operations. Banks and third-party providers started registering in a register last October to participate in the scheme. The service must be available on January 13, although some banks have requested a deadline. Currently limited to current accounts, the initiative will extend between 2018 and 2019 to other products covered by the DSP2 Directive. The top nine UK institutions funded the Open Banking projectBelgian banks have also positioned themselves for a long time on the subject. Four major banks founded Isabel Group in 1995. Initially, they focused on the security of online payment. "It was when the Internet came in. The Belgian banks realized that they could not create a secure payment tool on their own, so they decided to do it with each other, because Belgium is a small country. Banks could easily get along, "says Pierre-Antoine Dusoulier, co-founder of iBanFirst, a Franco-Belgian company that offers SMEs tools for making transactions abroad at a lower cost. Since then, Isabel Group offers Belgian professionals to view all their banking transactions (from different banks) on a single interface. She recently created a Hub API, which allows to be compliant with the DSP2. Today, Isabel Group comprises twenty-seven institutions, including foreign banks such as BBVA, Deutsche Bank ING and Société Générale. The last one to join the entity is IBanFirst, last August. It is the first payment provider to be part of this entity. "They preferred to let the wolf into the sheepfold rather than leave it outside," laughs Pierre-Antoine Dusoulier.In France, the STET, entity created in 2004 by the six major French banks and which manages the authorization requests for each payment by credit card on the territory, also launched a payment API DSP2 last July. Only problem, no bank has yet announced its intention to adopt it. "Several banks close to the STET should take it," think Julien Maldonato, partner at Deloitte. "But banks have faced the same difficulty for years, namely the complexity of information systems. Between goodwill and reality, there is a margin. It is not so simple to be perfect in the open data, "he concludes.
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