Fiserv, the global provider of financial services technology, announced Wednesday (April 25) the launch of FinKit for Open Banking, which is aimed at helping financial institutions meet and keep pace with new regulations coming thanks to the open banking initiative.
In a press release, Fiserv said the financial services industry will be transformed by the move toward open banking led by the European Union’s Second Payment Services Directive (PSD2) and the United Kingdom’s Open Banking Implementation Entity (OBIE). Because of these two regulations, consumers will be able to get access to financial information and engage in some transactions that were once only accessible via financial institutions. The FinKit for Open Banking was developed to enable near and long-term compliance with the regulations and gives banks the ability to go after open banking in a robust way.
FinKit for Open Banking is a service the banking industry can use to run, monitor and support the application programming interfaces (APIs) needed to share information with trusted third-party providers (TPPs). It includes access to pre-built PSD2 and Open Banking APIs and facilitates ongoing compliance through API version control, release management and distribution. Fiserv said financial services companies can also use FinKit for Open Banking to authenticate TPPS and get the necessary consent for information sharing. Fiserv noted the company is engaged with European and UK Open Banking working groups so that it has insight into the regulatory changes coming.
“The costliest mistake financial institutions can make in the move to open banking is to focus only on the immediate fix,” Lee Cameron, senior vice president, FinKit, Digital Banking, Fiserv said in the press release. “This transformation will extend well beyond the current race to comply. We’ve had the advantage of seeing initial efforts play out in the marketplace and have applied the insights gained to our technology to help organizations become compliant, stay compliant and maximize the opportunities ahead.”