The Open Banking and PSD2 Challenge

Posted 8th June 2018 by in PSD2, Use Cases Topics: , , ,

The Open Banking and PSD2 Challenge

Challenge: Open Banking

  • The Financial Services industry is undergoing another major transformation underpinned by Open Banking and PSD2, initiatives designed to bring more competition and innovation to financial services.
  • Open Banking and PSD2 aim to give customers more control over their financial data and to open up the banking landscape to new and competitive third-party products and services.
  • Individuals can grant these third parties secure access to their bank account information and permission to make payments on their behalf.
  • Banks are obligated to provide data to third parties, increasing competition with other banks and FinTechs to retain and acquire new customers.
  • Open Banking is also aligned with new data protection regulations (GDPR): both put the customer in control of their data and mandate accountability and privacy by design in data processing.
  • Banks need a solution that can solve multi-channel and global consent so they can be confident of the legal basis to use and share this data; with their partners and subsidiaries and third parties.
  • Maintaining reputations and customer trust is more vital than ever and banks need to ensure that they are transparent with their customers and provide a consent solution that is reliable, secure and does not hinder the user experience.

The Solution

  • Trunomi provides consent and data rights management technology that allows businesses to request, record and immutably prove customer consent to the use of their personal data
  • Trunomi’s end-to-end consent management allows businesses to embed Personal Data sharing controls seamlessly into existing and pre-authenticated customer touchpoints and capture customer consent to account access by Third Party Providers (TPPs).
  • Trunomi’s advanced distributed ledger with over 80 connectors seamlessly integrates into your existing system using secure well documented APIs and captures consent in real-time; generating auditable and immutable consent receipts (TruCerts™).
  • Designed to be reliable, secure, adaptable and end customer centric, Trunomi demonstrates to your customers their data is in reliable hands, meaning you won’t lose your trust advantage.
  • Preference centres mean your customers can choose, change, rectify and revoke their consent at ease.

In Summary

In today’s climate of increased  competition, legal scrutiny and reputational vulnerability, it is unthinkable for an organization within this sector not to take all efforts to reduce corporate risk and eliminate liability, especially when it comes to providing third party access to data as sensitive as a person’s financial records.  But Open Banking and PSD2 are also an opportunity to build customer trust and create genuine win-win-win opportunities for banks, third party providers and customers. Trunomi’s secure and immutable platform plays a key role in making this a success.