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Case study | 13 May 2020
Polish open banking hub supported by Neontri
Krzysiek
ss
PSD2 is an EU directive designed to regulate access to bank data and enhance security, innovation and market competition. Learn how we supported creation of a hub that made the smooth implementation of PSD2 possible for banks and Third Party Providers.
 
Thanks to our cooperation with KIR - a national clearing house and a fintech hub, a unique platform has been created that’s now used by almost 300 banks. This practical implementation of an open banking system has put Poland in the elite group of EU countries that have developed their own local open APIs.
 
CHALENNGE
 

How can communication between banks and fintechs after the implementation of the PSD2 regulation be simplified?

PSD2 has given banks – especially smaller ones – some headaches because of its short implementation time, very costly architecture building process and insufficient resources. It has also brought about challenges for fintechs and other financial services providers (TPPs) that, thanks to the directive, were to benefit from the resources of banks. Under PSD2, in order to implement their innovations, they would have to contact hundreds of banks that are active in the market - about 600 of entities in Poland alone.

The best option allowing to address all of the above challenges, would be to create an architecture that hooks banks up with TPPs, minimizing the time and cost of implementation for individual institutions. This idea - proposed by KIR (Polish National Clearing House), a key entity in the Polish payment system infrastructure and a qualified trust service provider - was a starting point for a collaborative project between Neontri and KIR. Meet the PSD2 hub.

 

 PSDII Hub 

THE SOLUTION

A unique platform to facilitate the implementation of PSD2

PSD2 hub is a comprehensive solution, that enables a smooth and secure exchange of sensitive data, such as bank account information. Hub structure consists of 3 individual products that can be used separately: Developer’s Portal, Sandbox and Gateway API.    

PSDII Hub

Developer’s Portal can be used to register external TPPs, generate test data, and download information about the PSD2 API specification provided by a bank. 

Sandbox is a solution designed for setting up test environments. Integration takes place without participation of a bank. Thanks to this model, TTPs and ASPSPs have no need to create their own test environments and simulate each other. Again, the benefit is saving time and money. 

And last but not least, Gateway API manages access to a bank's API, verifies certificates, and makes it possible to integrate more value-added services, such as anti-fraud mechanisms, in coming future.

 

RESULT

Innovation available internationally

The PSD2 hub, launched as a result of KIR and Neontri cooperation, is already integrating almost 300 banks with a growing number of TPPS. In Poland, fintechs and other financial organisations, in order to become a TTP must obtain the approval of the Polish Financial Supervision Authority (KNF), and the platform serves all parties in the process. What’s more, banks themselves can also act as TPPs and use the infrastructure set up by KIR for these entities, while TPPs can implement their own innovations and build competitive services in parallel. 

 

The PSD2 hub was launched in March 2019, a good six months before PSD2 came into force. Plus, the hub may be easily integrated into the pan-European open banking ecosystem, because Neontri was granted a license to use and implement the architecture in other EU countries as well. 

 

Estimated reading time: 3 minutes