Fiorano Introduces PSD2 Platform For Banks

With Europe only weeks away from PSD2 taking effect, Fiorano Software is debuting its solution for financial institutions (FIs) in the region to comply with the directive.

The company revealed its new solution on Monday (Nov. 20), Fiorano PSD2, a platform for FIs across the EU to ensure compliance with PSD2, built on the company’s existing API Management capabilities and banking integration management tools.

PSD2 is largely designed to promote open banking and boost competition in the financial services space, as more FinTech solutions emerge that require access to data financial institutions. APIs have become instrumental in facilitating data sharing between FIs and FinTech platforms.

“By building on PSD2 as a solution on top of a tightly integrated API Management and ESB platform, Fiorano masks complex technical details [and] dramatically simplifies the time and effort for compliance,” said Fiorano Software CEO Atul Saini in a statement.

The company noted its solution integrates with banks’ existing platforms and takes a few weeks to implement. The tool provides banks with secure APIs to enable the flow of sensitive data between the FI and other platforms, including account information and transaction history.

Some FIs have been reluctant to share their data with competing FinTech platforms, while others view the initiative as a way to foster collaboration between traditional banks and FinTechs as banks face heightened pressure to provide more innovative services to their customers.

In a recent interview with PYMNTS, Token, Inc. Co-Founder and VP of Marketing Marten Nelson said incoming requirements from PSD2 have led to many FIs becoming more optimistic about open banking.

“If you operate off of open banking, you invite third parties into an ecosystem, you’ll eventually provide the products and services your customers really want, and that is ultimately the only way you can avoid disruption,” he said earlier this month.