A 2-part blog series for anyone interested in the protections that exist for customers who chose to access their financial data through third-party providers. We hope readers will come away with a clearer view of the different roles of businesses involved in open banking. Part I is about the ‘data retrievers’ — account information services providers, and the technical service providers they work with. Part II focuses on the next links in the data chain: Agents — who provide account information services on behalf of AISPs; and then we examine so-called ‘Third Parties not providing AIS’.
Retrieving Data
“‘Open’ banking suggests that something has been closed off, or inaccessible. That something is customer transaction data. Banks have historically hoarded this data like sleepy dragons, sitting on treasure 🐉. Open Banking changed things. It introduced requirements for dedicated data-sharing channels, between banks and third parties.
It suits banks to have a unique perspective on their customers’ spending habits, incomes, life events. It’s a perfect source of market intelligence and a monetisable commodity. This explains why, while the banking industry has embraced advanced technology in many areas — trading, cloud, AI, even blockchain — it has been trailing behind in the technology of data access.”
The complete post from TrueLayer: Customers and the Data Chain: Retrieving data
Agents and others
“Under PSD2, AISPs may provide their services through agents. Agents are not regulated in their own right, but provide the AISP’s services to end-customers on behalf of the AISP. In the same way that an AISP is responsible for everything done by its TSP, the AISP is also responsible for everything done by its agents and must have systems and controls in place to monitor its agents’ activities. This is reflected in the PSD2 requirement for the AISP to increase the amount of professional indemnity insurance it holds in proportion to the number of agents it has. AISPs must also register their agents with the FCA.”
The complete post from TrueLayer: Customers and the data chain: Agents and others
