Open Banking PTBR

6 axway.com Pütz believes this shared portal will be an important mechanism to help banks of all sizes promote their APIs to third-party developers. Each bank or fintech that signs up to release their APIs will be able to add a full catalog to their developer portal page, not just share their PSD2 standardized APIs. "In the future, banks can create new services," said Pütz. "An accountant may want to have more details about payments that are not in the PSD2 context. It will be possible for a bank to expose other web services as APIs that might offer this additional level of information. That could be a paid service, so banks will be able to provide that product via our platform." Offering compliance-as-a-service LUXHUB's focus on providing a common developer portal for banks is an example of a new industry subsector created because of APIs and PSD2: the emergence of compliance-as-a-service products. Pütz explains: "On our platform, we are offering a lot of services that assist banks with the validation of the AISP or PISP certificates of the third-party developers," he said. He lists a range of examples: • Each AISP or PISP certificate will be validated by LUXHUB, so banks don't have to develop the workflow and internal systems to do that themselves • At the standards level, every bank exposes their APIs in STET and Berlin Group standards • LUXHUB helps ensure banking APIs have a 24/7 availability of access for their services. • Since banks are obligated to offer a sandbox environment so third parties can validate their API implementations, LUXHUB offers this as well Under PSD2 regulation (alongside other new requirements such as the General Data Protection Regulation, GDPR), banks are obligated to carry out many of the above tasks but there is no competitive advantage in doing so. Therefore, Pütz believes it makes more sense for a centralized platform to deliver all of these regulatory requirements on behalf of banks, so that banks can concentrate on how APIs will require new business models and new revenue stream pursuits in the future. Using LUXHUB, banks can prepare reports as needed to demonstrate compliance with regulation, without having to maintain those systems internally. A modularized platform approach LUXHUB's platform is composed of a suite of functionalities including the compliance-as-a-service tasks, the developer portal catalog, and API management capabilities such as being able to monitor and rate limit third-party consumption of a bank's APIs. Banks and fintechs wanting to utilize the platform don't necessarily need to make use of all of those features. The modularized approach also helps banks speed up their launch of new API products. "One big advantage is that banks now have a standard interface for integrating with third -party providers. So they can reuse the security and identification part of their PSD2 APIs for the development of new API products as well," says Pütz. Without LUXHUB, some banks are taking a more severe road to avoid having to duplicate the work that this open banking platform is doing. "We know of one bank already that will no longer offer payment accounts. They have said they are only doing asset management from now on, no more cards. They took this position to avoid the headache of PSD2 regulation," Pütz said.

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