BRUSSELS, 11 July 2017 – The European Parliament today hosted a breakfast meeting with representatives of consumer groups, financial technology firms, IT experts, banks and banking associations on the interaction between banks and third-party providers (TPPs) under the second EU Payment Services Directive (PSD2). Hosted by MEP Neena Gill (S&D, UK), the breakfast heard from representatives of the European Banking Federation, MoneyHub, UKFinance, the Berlin Group, BEUC, the European consumer organisation, the European Commission and the European Association of Cooperative Banks.
Interesting points by @davidgtonge CTO @moneyhubapp on the importance of having a common interface’s to encourage innovation #EBF #psd2 pic.twitter.com/srgaWfoteE
— Neena Gill MEP (@NeenaGmep) July 11, 2017
Hosting #EBF ‘Traditional banks have no divine right to handle payments. #Fintech sector can help innovate best products for consumer’ #PSD2 pic.twitter.com/dTq3pDgwDO
— Neena Gill MEP (@NeenaGmep) July 11, 2017
The EBF presented the following video to explain the importance of APIs, or Application Programming Interfaces, when it comes to future interaction of clients with their bank accounts.
Thx @NeenaGmep for hosting PSD2 WS. Imp. to understand what is @stake! APIs will open competition in safer & reliable way!Notscreenscraping
— de Brouwer S (@deBrouwerEBF) July 11, 2017
Valuable insights shared on #fintech #PSD2 #Openbanking #payments and fin. innovation at @Europarl_EN breakfast kindly hosted by @NeenaGmep pic.twitter.com/MaGBG9MQ8m
— EBF 🇪🇺 (@EBFeu) July 11, 2017
UK #fintech community united in approach to #openbanking via APIs, David Tong @MoneyHubUK tells PSD2 breakfast w/ @NeenaGmep in Brussels pic.twitter.com/zCPydrrAZS
— Raymond Frenken (@FrenkenEBF) July 11, 2017
Monique Gooyens presented the position of Beuc, the European consumer organisation, speaking out clearly against the use of screen-scraping:
#beuc is opposed to #screenscraping for #data #protection and #security reasons. Support #eba_News standard and strong #APIs pic.twitter.com/Q5xt7Gn4L0
— Elisa BevilacquaEACB (@bevilacquaeacb) July 11, 2017
The battle between #FinTechs and banks on consumer data is heating up – here’s what we think needs to happen https://t.co/lTU389yCqG pic.twitter.com/UNi8Kb4l6P
— The Consumer Voice (@beuc) July 6, 2017
EBF, EACB and the European Savings Banks Group (ESBG) presented a jointly held position on efficient and future-proof interaction between banks and third-parties under PSD2. Click here for the position document.
Related:
- 14 June 2017: EU FinTech consultation: put needs of end-users first
- 2 June 2017: Banks support ecosystem of interoperable APIs in EU
- 16 May 2017: EBF video: What is screen-scraping?
- 24 February 2017: European banks support innovation under PSD2
EBF media contact:
Raymond Frenken, Head of Communications, +32 496 52 59 47, r.frenken@ebf.eu
About the EBF:
The European Banking Federation is the voice of the European banking sector, uniting 32 national banking associations in Europe that together represent some 4,500 banks – large and small, wholesale and retail, local and international – employing about 2.1 million people.EBF members represent banks that make available loans to the European economy in excess of €20 trillion and that securely handle more than 400 million payment transactions per day. Launched in 1960, the EBF is committed to creating a single market for financial services in the European Union and to supporting policies that foster economic growth.
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]]>EBF STATEMENT
EBF: Online payment standards still face obstacles
- Banks fully support secure payments in EU Digital Single Market
- EU Commission recognizes importance of APIs for online payments
- ‘Fall-back’ criteria seen as incompatible with operational reality
BRUSSELS, 27 November 2017 – The European Banking Federation notes that the European Commission on Monday adopted its regulatory and technical standards for the second EU Payment Services Directive, known as PSD2, designed to allow consumers to access more convenient and innovative payment solutions.
Considering client needs at a time when cybersecurity becomes increasingly important, banks fully support a safe online payments landscape in the EU Digital Single Market. Such a system needs to be based on an efficient and effective ecosystem of payment interfaces, known as APIs, so that online payments can be secure and that communication via the banks’ infrastructure between third-party service providers and clients can be reliable.
The EBF had asked EU policymakers to introduce the rules for PSD2 in such a way that privacy of client data and security of bank accounts both are fully respected. In its initial assessment of the adopted standards EBF notes as positive the recognition of the importance of APIs for the online payments landscape in the EU. APIs[1] are the only secure and reliable way possible for letting competition unfold in the EU single market.
EBF notes the Commission said it will end the unsafe practice of screen scraping by third party service providers. EBF however does not consider the ‘fall-back’ solution adopted by the Commission as a practicable. The criteria that would trigger the fall-back appear to be incompatible with operational reality. This solution also does not ascertain that the information accessed by the third-party provider is limited to what is needed for execution of the service they provide.
Media contact:
Raymond Frenken, Head of Communications, +32 2 508 3732, r.frenken@ebf.eu
About the EBF:
The European Banking Federation is the voice of the European banking sector, uniting 32 national banking associations in Europe that together represent some 3,500 banks – large and small, wholesale and retail, local and international – employing approximately two million people. EBF members represent banks that make available loans to the European economy in excess of €20 trillion and that securely handle more than 400 million payment transactions per day. Launched in 1960, the EBF is committed to creating a single market for financial services in the European Union and to supporting policies that foster economic growth.
[1] EBF video: What APIs mean for banking http://www.ebf.eu/what-do-apis-mean-for-banking/
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The post PSD2 RTS adopted: Online payment standards still face obstacles appeared first on EBF.
]]>EBF PRESS RELEASE
EBF Cloud Banking Forum launched to support cloud adoption
- Policy hub on cloud computing for banks & Cloud Service Providers
- High-level policy recommendations foreseen for regulators
- Both global and EU cloud service providers to join
- EU Institutions invited as observers
BRUSSELS, 7 December 2017 – The European Banking Federation has launched a new initiative that brings together banking experts and cloud service providers. The EBF Cloud Banking Forum, announced today at the first EBF Cloud Banking Conference, aims to shape a clearer and harmonised supervisory approach towards cloud computing and to support the swift adoption of public/hybrid cloud solutions in the banking sector.
The EBF Cloud Banking Forum will include European banks members of EBF expert groups active on cloud computing: IT architects, legal and cybersecurity specialists. The forum foresees a close partnership with leading global and European cloud service providers, known as CSPs. The first potential partners include Amazon Web Services, Google, Microsoft, OVH and Salesforce. EBF also aims to involve relevant trade bodies and EU institutions as observing members.
Says Wim Mijs, Chief Executive Officer of the EBF:
“Cloud computing is driving both the digital transformation of banks and the EU Digital Single Market. We need to create a safe and clear regulatory environment so that both banks and supervisors can do their job well. The success of our first Cloud Banking conference and the launch of the EBF Cloud Banking Forum demonstrates that there is a willingness to innovate and a thirst for clear rules in cloud banking.”
The EBF Cloud Banking Forum seeks to support an informed dialogue between banks and cloud service providers, ultimately delivering high-level industry recommendations for supervisors notably on the following:
- access rights & audits, pooled audits and third-party audits;
- life-cycle management, exit strategy & defining business continuity plan criteria;
- criteria for materiality assessment and other risk assessments;
- reporting of outsourced activities.
Cloud computing is a driving force behind improved data analytics, machine learning, scalable distributed ledgers and much more. Banks around the world are increasingly using cloud computing through diverse contractual arrangements with cloud service providers.
Among many other benefits for banks, the adoption of public/hybrid cloud solutions will help banks to better meet their customer needs and speed up the pace of innovation.
The current regulatory environment does not facilitate a rapid transition towards cloud banking as it is not yet fully clear how and what is required from banks in terms of compliance when adopting cloud operating models.
The discussions in the forum will focus specifically on public and hybrid cloud solutions. Public cloud solutions let service providers make resources like apps and storage available via an accessible network where multiple clients can share the same resources. A hybrid cloud is an integrated cloud service utilising both private and public clouds to perform distinct functions within the same organisation.
For more information about the EBF Cloud Banking Forum:
Noemie Papp, Head of Digital and Retail, n.papp@ebf.eu
Media contact:
Nahuel Mercedes, Communications Officer, +32 474 98 13 61, n.mercedes@ebf.eu
About the EBF:
The European Banking Federation is the voice of the European banking sector, uniting 32 national banking associations in Europe that together represent some 4,500 banks – large and small, wholesale and retail, local and international – employing about 2.1 million people. EBF members represent banks that make available loans to the European economy in excess of €20 trillion and that securely handle more than 400 million payment transactions per day. Launched in 1960, the EBF is committed to creating a single market for financial services in the European Union and to supporting policies that foster economic growth.
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Every Friday at noon you can receive the EBF Weekly + Financial Regulation Agenda. This agenda presents an overview of upcoming European and international meetings and conferences in financial regulation, as well as important general financial and economic events and key EBF meetings for the week ahead. CLICK HERE TO SUBSCRIBE
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]]>11 July 2017
API stands for Application Programming Interface. What is an API and why is it important for banking?
This video explains the basics of APIs and the role they can play in future online payment services that are possible under the second Payment Services Directive (PSD2) of the European Union.
Related content:
- 11 July 2017: PSD2 breakfast at the European Parliament
- 14 June 2017: EU FinTech consultation: put needs of end-users first
- 2 June 2017: Banks support ecosystem of interoperable APIs in EU
- 16 May 2017: EBF video: What is screen-scraping?
- 24 February 2017: European banks support innovation under PSD2
The post EBF video: What do APIs mean for banking? appeared first on EBF.
]]>- EBF underlines importance of privacy and security under PSD2
BRUSSELS, 2 June 2017 – In the context of the second EU Payment Services Directive (PSD2) the European Banking Federation would like to underline that banks in the European Union fully support the creation of an efficient and effective EU ecosystem of interoperable interfaces for secure and reliable communication via the banks’ infrastructure between third-party payment service providers, known as TPPs, and clients.
Customers expect banks to protect their personal data. Data protection is at the core of trust in financial institutions. That is why the EBF, taking note of the European Commission’s response to the European Banking Authority (EBA) on its regulatory and technical standards for strong customer authentication under PSD2, would like to reiterate its concerns over the consequences of the amendment proposed by the European Commission.
Even though TPPs would have to identify themselves towards banks, they would still have access, at minima, to all the balances of all the accounts held by clients when clients pay on the internet through the existing practice known as ‘screen scraping’. The privacy of client data, cybersecurity and innovation are all at risk if ‘screen-scraping’ is allowed to continue once PSD2 enters into force next year. Clients must be able to choose which account data they want to share with payment service providers and which not. When a TPP accesses consumer accounts via ‘screen scraping’ services, even when identifying themselves to a bank, consumers are still not able to contain this TPP access to their account information, thus endangering the privacy of their data.
Banks instead favour an EU ecosystem for third-party access to consumer account data that is secure, reliable and interoperable, either through introducing Application Programming Interfaces, or APIs, or by upgrading existing bank interfaces. Only thus can TPP access be contained to only the data for which the consumer has given explicit consent. Such new and innovative financial technology would ensure compliance with the EU’s new privacy requirements under the General Data Protection Regulation (GDPR) that enters into force in May 2018. Banks in several EU Member States have already developed sector-wide APIs for third-party access to client accounts.
Media contact:
Raymond Frenken, Head of Communications, +32 496 52 59 47, r.frenken@ebf.eu
About the EBF:
The European Banking Federation is the voice of the European banking sector, uniting 32 national banking associations in Europe that together represent some 4,500 banks – large and small, wholesale and retail, local and international – employing about 2.1 million people.EBF members represent banks that make available loans to the European economy in excess of €20 trillion and that securely handle more than 400 million payment transactions per day. Launched in 1960, the EBF is committed to creating a single market for financial services in the European Union and to supporting policies that foster economic growth.
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]]>EBF asks Commission to support ban on screen scraping
Privacy of client data, cybersecurity and innovation at risk if EBA standards are dismissed and screen scraping continues
BRUSSELS, 16 May 2017 – The European Banking Federation has asked the European Commission not to dismiss a key recommendation by the European Banking Authority (EBA) on future electronic payments in the European Union. The EBF fears that the privacy of client data, cybersecurity and innovation are put at risk if the Commission does not fully endorse the EBA standards.
PSD2 introduces a general security upgrade for third-party access to a client’s data, bringing an end to practices known as ‘screen-scraping’ [VIDEO]. Such services, seen as a first-generation direct access technology, let third parties access bank accounts on a client’s behalf by impersonating while using their access credentials. PSD2 calls for the creation of a technology-neutral level-playing field for banks and fintechs, new and old.
The proposal requires banks to opt for either creating a ‘dedicated interface’ that lets third parties access bank accounts on behalf of clients, or to upgrade their client interface. These solutions would replace the old practice of screen-scraping. They ensure the continuation of direct access services in the EU in a secure way by empowering clients to decide for themselves which data can be accessed by third parties. The EBF sees the EBA standards as a common solution that ensures security and as a significant catalyst for innovation into the future in the European payments market, fully compliant with the EU’s General Data Protection Regulation (GDPR).
The European Commission appears to be willing to go against the EBA advice and may let screen-scraping continue by requiring banks to accept screen-scraping as an additional mandatory direct access method, forcing banks to maintain at least two interfaces. Banks are deeply concerned over this development and fear that such a choice would harm the development of electronic payment services. It would come at the expense of innovation in payment services and would make it more difficult to protect the privacy of account holders.
Says Wim Mijs, Chief Executive Officer of the EBF:
“The development of PSD2 can be compared to designing a new plane. You develop highly secure, innovative and sophisticated systems to make it fly. But what happens now, in the final development stages, is that the designers are required to put a heavy diesel generator on board. This plane then becomes too heavy to fly. If banks are forced to accept screen–scraping then PSD2 will never fly the way it was intended.”
Both banks and new entrants in financial services technology are actively engaged in an industry-wide effort to develop common processes and standards. The forum for this cooperation is the Working Group on Payment Initiation Services of the Euro Retail Payments Board, created by the European Central Bank.
Media Contact:
Raymond Frenken, Head of Communications, +32 496 52 59 47, r.frenken@ebf.eu
About the EBF:
The European Banking Federation is the voice of the European banking sector, uniting 32 national banking associations in Europe that together represent some 4,500 banks – large and small, wholesale and retail, local and international – employing about 2.1 million people. EBF members represent banks that make available loans to the European economy in excess of €20 trillion and that securely handle more than 300 million payment transactions per day. Launched in 1960, the EBF is committed to creating a single market for financial services in the European Union and to supporting policies that foster economic growth.
Subscribe to the EBF Weekly + FinReg Agenda
Every Friday at noon you can receive the EBF Weekly + Financial Regulation Agenda. This agenda presents an overview of upcoming European and international meetings and conferences in financial regulation, as well as important general financial and economic events and key EBF meetings for the week ahead. CLICK HERE TO SUBSCRIBE
Subscribe to the EBF Morning Brief
The EBF Morning Brief is published Monday through Friday morning and brings you the top banking headlines, relevant announcements from the EU institutions and the latest from the EBF and its members, national banking associations in 32 countries in Europe. CLICK HERE TO SUBSCRIBE
The post EBF asks Commission to support ban on screen scraping – PRESS RELEASE appeared first on EBF.
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