Three payment industry venture have launched Konsentus, a new RegTech company enabling financial institutions to meet PSD2 open banking requirements.
The company claims to be the first API based permission and consent management solution to address the regulation.
Konsentus will issue the consent management tokens on behalf of financial institutions through a SaaS platform, enabling them to comply with EU regulation and provide open banking services to their customers. The FIs are only providing data to Third Party Providers (TPPs) who are regulated, and have the customers ?explicitconsent to use their data.
FIs that provide transacting bank accounts accessible via an online channel, will under PSD2 and specifically the EBA Regulatory Technical Standard (RTS) for strong customer authentication & common secure communications, have to provide account access to TPPs, such as account information service providers (AISPs), payment initiation service providers (PISPs), payment instrument issuing service provider (PIISPs) and payment service providers (PSPs), when a customer has given their ‘explicit consent’ for those organisations to do so.
The Konsentus?service claims to secure tools, mechanisms and work flows to verify a customer explicit consent for access to bank account(s) information from registered TPPs for the provision of financial services, either for single or recurring transactions.
Mike Woods, founder and CEO of Konsentus stated ?After all my years in the industry it is great to be launching a company that is truly unique in its offering to a market opportunity that in itself is totally new as a result of PSD2.? With over 8,500 Banks, Credit Unions, EMIs, PIs all offering transactional accounts that must provide open access APIs we believe the opportunity for a solution like ours to support these organisations, removing their regulatory burden is very significant.p>
Prior to founding the UK-headquartered company, Woods was previously e-commerce executive at Natwest Bank, founder and CEO of Aconite Technology and CEO of Digital Payments at Proxama .
He founded Konsentus alongside Brendan Jones, previously product development director at MBNA and sales & marketing director G&D, and David Parker, the CEO of payment consultant Polymath Consulting.
Konsentus said its services will be continually developed to meet the requirements of other regions/countries as they move towards the adoption of open banking both initially inside the EU and longer term in other potential markets such as the USA, India, Australasia, Canada etc.
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