Open Banking and Finnova

At the latest since the introduction of the second EU Payment Services Directive (PSD2), everyone has been talking about open banking. Although the directive is not binding for the Swiss financial centre, Finnova is addressing the possible effects and opportunities of open banking in Switzerland.

Open banking is a concept that allows for the secure and real-time exchange of client, product and transaction data, as well as payment orders via open application interfaces (open APIs) – always with the aim of enabling a better client experience, more transparency and more innovation in the financial sector. For this, open banking relies on banks sharing their interfaces with third parties. The highest premise for this exchange is the agreement of the client.

In principle, open banking benefits consumers, but also promotes innovations and new fields of competition between banks and non-banks. As we understand it, open banking consists of much more than the PSD2 directive (with account information and payment trigger) in Europe stipulates. A great innovation potential exists in the numerous further applications.

We are actively shaping the topic of open banking together with banks, manufacturers, platform providers and also various sector organisations. We are working on the following topics for this:

  • In order to give more weight to the ‘open banking’ approach in the Swiss financial industry, we are a founding member of ‘openbankingproject.ch’. The aim of the consortium is to provide a structured access to essential information about standardised and operationalised (open banking) APIs.
  • Creation of a separate Finnova Developer Portal with the objective that all interested parties can find out about the available solutions in the Finnova environment and try out the interfaces.
  • Development of a concept for Consent & Preference Management for the mapping of rules as to which third-party provider has access to which accounts with which use cases, and how this can all be determined by the client
  • Conceptual development of bases for cooperation in the open banking ecosystem and validation of these bases using specific ideas
  • Continuous expansion of our API Roadmap (FIL Integration Services/Business Service Adapter and Open (Banking) APIs).