Baltic International Bank implements the Open Banking solution
In its business processes, Baltic International Bank ensures full compliance with the European Union’s (EU) Payment Services Directive 2 (PSD2) offering the open cooperation platform Open Banking. The service is secure because the Bank, upon receipt of the customer's request, verifies that third party providers (TPPs) are appropriately certified.
Jānis Osis, head of Digital Channel Development at Baltic International Bank, explains: "The fact that we offer Open Banking means that we are ready to open our payment services to other appropriately certified industry players, and it is up to the Customer to determine whether our bank details will be available to third parties, where and how it will happen.”
"The new opportunity is based on EU legislation and the ability of Baltic International Bank to adapt quickly providing new customer convenience," emphasised Osis adding that Open Banking is part of Baltic International Bank's new Internet Banking project which will be available at the end of the year and will serve as a platform for the future development of new products and services.
Within the framework of Open Banking, a customer submits to a third party provider (TPP) his or her consent for the transfer of the customer’s data after which the Bank receives a request and verifies that the respective TPP is duly certified. If the response is positive, the customer, upon authorization with his or her digipass, transfers his or her account information to the TPP for 90 days. Authorizations and confirmations last up to 90 days. Customers are free to choose which accounts they want to view and manage in one place. The TPP will need to be certified in accordance with PSD2 requirements and, in addition, will have to inform the Financial and Capital Market Commission (FCMC) about the provision of the service in Latvia.
Baltic International Bank encourages its customers to always be responsible for the security of their data and reminds them that authorization within the framework of the service is through the Internet Banking or certified TPPs only. Customers are kindly requested to inform the Bank whenever they have received an Internet Banking password or other sensitive data request via email or other homepage form!
About the Payment Services Directive (PSD2)
At the beginning of 2018, the second Payment Services Directive, known as PSD2 (Payment Service Directive 2), came into force in the EU. Its terms are reflected in the Payment Services and Electronic Money Law. This Directive paved the way for the development of Open Banking helping customers to better monitor their payments, account information, and generally increasing competition in financial markets.