Temenos has teamed up with LUXHUB, a European open banking API platform, to create a PSD2 solution for banks.
Through the partnership, the two want to help banks meet PSD2 standards and leverage additional opportunities available via the new API economy.
LUXHUB, which is formed by four major Luxembourgish retail banks, aims to help the entire banking ecosystem take advantage of the challenges and opportunities of the European PSD2 directive.
PSD2, which went into effect in January, is placing new demands on the underlying technology architectures of incumbent banks. The regulation brings with new demands such as the need for real-time 24×7 support for open Application Programming Interfaces (APIs) and messages, scalability to deal with the higher transaction volumes, and enhanced security and authentication.
Jacques Putz, CEO at LUXHUB, said: “You don’t need to become a technical service provider to be PSD2 compliant. At LUXHUB, we’re quickly developing our range of solutions to guarantee banks full compliance, and ensure high-level flexibility.
“In the future, successful, innovative business will only be possible by collaborating with service providers, FinTech startups and other financial institutions, and even those outside of the financial services sector. LUXHUB sees its mission as helping European financial institutions with these exciting new challenges. By collaborating with service providers like Temenos, we are bringing that PSD2 compliance straight to your core.”
Last month, a panel at the Global RegTech Summit 2018 said threat of competition is one of the biggest challenges arising from Open Banking; however, banks should fear internet giants rather than FinTechs.
The panels moderator, Gilian Boston, head of business consulting at AutoRek, asked the panel for their views on the strategies which can help am organisations take advantage of PSD2, instead of fear it. Ralf Huber opened the discussion by claiming that banks are currently in a position of strength, as they have the trust, the clients, and they have being doing it for ages.
He said, “As PDS2 is an outbound API requirement, where you have to give out client data, I see a risk there. However, the advantages of having an inbound service offering, a marketplace service offering, allows the bank’s clients to profit from various elements a bank can’t cover.
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