With its new “API HUB” service, Isabel Group offers banks a solution that is compatible with PSD2 rules and provides standardised access to bank accounts.
Isabel Group launches a new “API HUB” service designed to enable the Belgian banking sector, or any bank operating in Europe, to meet the requirements of the European Payments Services Directive (PSD2). Specifically, any authorised company wishing to develop associated services around payment initiation and/or account information will have standardised access to bank accounts. Moreover, the modular nature of the solution allows banks to consider moving towards “open banking” at their own pace.
The EU PSD2 Directive will shake up the world of payments by making access to bank accounts compulsory under fairly strict conditions. This access will be provided via an Application Programming Interface (API). Any certified company, technically known as a third-party payment service provider (TPP), will be able to ask the banks for access to accounts for the purpose of providing various associated services around payment initiation and/or account information.
Changes and instability in prospect: Isabel Group’s response
Banks will face many varied requests, while having to guarantee that these requests will be carried out properly under optimal security conditions. Moreover, the European Commission has yet to specify the regulatory framework. The final text should be available this summer. From that date, the sector will have 18 months to comply. The deadline for making the texts applicable in the legislation of the EU Member States is 13 January 2018.
The sector will have to face these profound changes. Isabel Group, a leading provider of payment services for more than 20 years, is helping the Belgian banking sector, or any bank operating in Europe, to overcome these uncertainties. Its new “API HUB” service is an original, modular, secure and innovative solution. It is compatible with the EU PSD2 rules and is subject to prior approval and continuous supervision by competent authorities. This solution also standardises access to accounts and provides the necessary developments for all interested third-party payment service providers (TPPs).
Jean de Crane, CEO of Isabel Group: “The main feature of this service offering is that it provides not only the IT components but also, importantly, a whole range of additional services. In addition, the solution is available in “service” mode, which is quite an original solution on the market. From a bank’s point of view, this is an end-to-end solution that enables it to comply with the European Commission’s rules in the least intrusive manner possible.”
Undoubted added value for the entire banking landscape
This platform, in “service” mode, will allow any bank to connect. Isabel Group’s expertise will facilitate connectivity, regardless of the bank’s interface.
Jean de Crane, CEO of Isabel Group: “Connecting banks has been our business for more than two decades; it’s in our DNA. We can offer banks the fastest route to complying with the constraints of PSD2 while enabling them to prepare for the future. Our model handles the difficulties and uncertainties associated with all these changes. We are of course offering this to the members of our community, and also to any bank wishing to take up the challenges of PSD2 in the most convenient way possible”.
The added value of the “API HUB” benefits the entire banking eco-system. Indeed, it will be of use not only to the banks, but also to third-party payment service providers (TPPs). A single connection will allow them to connect to many banks. The platform is open to the entire European banking sector. The fact that more banks and TPPs are connected to the API HUB will create a leverage effect and will augment the added value of the solution for the different parties concerned. PSD2 is likely to bring more user-friendly services to the customer.
A first step towards “open banking”
“Open banking” is the new framework within which the banking sector will develop in the near future. The use of Application Programming Interfaces (APIs), third-party access to data, and a dramatic rise in the number of stakeholders, will open up the sector. In this context, each bank will have to make choices about how far it wishes to open up.
Jean de Crane, CEO of Isabel Group: “In its basic form, our solution offers the minimum required to comply with European Commission rules. Moreover, because our offering is modular, both the banks and third-party payment service providers can move towards the “open banking” model at their own pace, while continuing to comply with European Commission rules”.