In Vipera plc (LON:VIP) last PSD2 update we discussed how the current implementation guidelines could potentially make things very difficult for third party providers: the AISPs and the PISPs*, even when one of the key aims of the new regulation is to increase competition in financial services, by creating a more level-playing field.
To recap, the issue was that, as things stood, new TPPs would have to individually integrate the APIs of every single bank within their market, if they hoped to provide a comprehensive service to their customers. This would of course be a time-consuming and costly process. Furthermore, in a last-minute surprise, the European Banking Authority decided to ban screen-scraping (the technology currently used by AISPs) under their final draft of the new regulations.
There have been a number of interesting developments over the past few months, but in the end (or at least to date) the situation remains essentially unchanged.
The screen-scraping AISPs were naturally very unimpressed with the fact that their business model was to be potentially wiped out with the stroke of a pen. They argued that there has been no reported case of fraud involving a screen-scraping AISP (despite the fact that users have to provide bank login credentials to them). They found support from the powerful European Commission who asked the EBA to review their decision and to maintain screen-scraping as a back-up in case the API access proved to be too restrictive. The European Banking Federation hit back, arguing that the ban should be retained.
