March 14 was a deadline for launching a test environment for psd2 services. The clock relentlessly counts down the time until the API will have to be publicly available and September 14 is the deadline for start new world of open banking.
API – the base for communication between pages
The majority of banks based their PSD2 directive implementation on one of the standards (e.g. Polish API or standard created by Berlin Group) but there may occur significant implementation differences between banks. Standards define some parts of the solution and banks are free to set their guidelines for the parts without specification. This “freedom” means that connecting with every single API will be required additional work. Also, the standard is not a necessary thing- banks can use it in their entirety, select certain elements or create a completely separate solution. We should also mention the evolution of the standards – this will generate the next batch of work of all entities connected to them. TPP will need the opposite – easy and efficient access to many banks with only one integration.
Access to full potential of open banking in one place
TPP main subject of interest is focusing on developing services – creating new innovative product and deliver an exceptional user experience. PSD2 directive and open banking have a great potential to support TPP business but also this is a challenge for them.
Interaction with several APIs will require a dedication of the significant amount of work that can be use more effectively. This same problem will appear when TPP need to maintain connection with different APIs. In the best case TPP will have to burn a lot of time and resources to adapt to dozens of APIs and this effort could be used in differences places more effectively. In the worst case TPP will not be able to find necessary resources loose the chance to use potential of open banking. In both case API aggregators will come to rescue.
API Hub – the bridge between banks and TPP
An aggregator is one unified interface that allows access to many banks when only one integration.
API Hub funcionalities
– provides one secure interface for access to many banking APIs
– one integration allows quick and easy access to extensive market/resources in a short time
– create a TPPs – banks ecosystem
– designed for developers has a full set of documentation and testing environment
– significantly reduces the costs of connecting to many banks and subsequent maintenance
– is an opportunity for smaller banks to increase interaction with TPP
– support implementation of the AIS service – retrieve information on transaction history accounts from many banks
– support implementation of the PIS service – payment initiation
API Agreegator should be created for developers, with full documentation. The structured and consistent data format, ensuring full compliance with the requirements of the PSD2 and GDPR Directives are the next basic benefits that these solutions bring.
Whizzapi is an effective bridge between fintechs and banks. Based on 15 years of experience in working with the banking sector we have gained the experience necessary to design a solution that will support entry into the world of open banking.