Avaloq Doubles Down on Open Banking with Its Latest Solutions

With the deadline looming for financial services firms to be fully compliant with the Payment Services Directive II by September 2019, Avaloq is gunning to capitalise on the rush with its latest solution.

According to its press release this new solution has a wide range of deployment options tailored to different configurations which comes already integrated with its existing core banking and digital banking software.

PSD2, which came into force in January 2018, regulates payment services and payment service providers throughout Europe. For the first time, it will allow with consent, third parties to access customer data to provide value-added payments and banking services.

Under the implementation process, institutions will have to offer their open Application Programming Interface (APIs) to third-party providers for testing and integration six months before the final implementation date of September 2019. This means that their APIs must be ready from March next year.

A study by Accenture estimated that by 2020, EUR61 billion of the total banking revenue pool in Europe (equivalent of 7 percent) will be associated with open banking-enabled activities.

A separate survey of 90 European banks by Deloitte found that about half are planning to use PSD2 to become an Account Information Service Provider, which lets customers see all of their account information from different bank accounts in one place online or in a mobile app.

Featured image credit: Avaloq