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In Europe and the UK, all banks must offer API access to customers' account data, with the customer in control of what is shared with whom. The rules governing
by stevesimmons 5y ago
In Europe and the UK, all banks must offer API access to customers' account data, with the customer in control of what is shared with whom. The rules governing this are OpenBanking in the UK and PSD2 (Payment Services Directive) in the EU.
Any company wanting to use account data must get explicit consent from the customer, via a consent flow involving authenticating themselves to their bank. The customer can revoke consent any time via their bank's web site.
GDPR plus the OpenBanking (UK) and PSD2 (EU) regulations provide strong guarantees of security.
Nothing like the US's sharing of transaction data is allowed here.
Tink's role here is to be a single API connecting to all European banks using the PSD2/OB protocols.
> but what do I know, maybe I am wrong...
Yes you are. 100% wrong. Europe is miles ahead of the United States here.
- varispeed 5y agoThank you. Do you think it would be possible for these services to operate in a manner that does not require sharing data with them? For example, if the 3rd party app wants to show you your aggregate spending, they could run the operation on the bank's server and then the result would be end to end encrypted and shown on a customer device, without the 3rd party being able to read any details. Interesting that they went with full data sharing, that's a bit lazy and careless.
- stevesimmons 5y agoThe third parties are tightly regulated. For instance, they need to be registered by the FCA as an AISP or a PISP for respectively showing account info and initiating payments. Personally, I am comfortable with that. Your suggestion makes it more complicated for each bank, which means you won't get uniform, consistent coverage. Better to leave more space for Open Banking specialist providers to innovate, while regulating them tighly.