Open Banking, GDPR and PSD2 for FinTech

Define an API as a software intermediary and standardized messenger enabling cross‑company interaction. Explore open public, partner/private, and internal APIs, their pricing models, and how APIs boost distribution and innovation.

Discover how APIs enable travel bookings and ride-hailing by connecting airlines, aggregators, and partners; learn how Uber aggregates third-party services like maps, payments, and communications.

Explore how open banking, driven by regulators, enables secure, standardized API data sharing among banks with explicit customer consent, overseen by the Open Banking Implementation Entity.

Explore PSD2 as the EU regulation that requires banks to open customer data securely via APIs, enabling open banking, a unified payments market, and fair competition.

Learn how an account information service provider enables explicit consent, read-only access to bank data under PSD2, delivering a secure single sign-on view for financial advisors while protecting GDPR.

The lecture defines a payment initiation service provider (pisp) and explains how a third party can initiate payments from your bank account with your consent, within open banking and psd2.

Discover how payment and issuing service providers (CISPA) operate under PSD2, where an issuing service provider checks funds availability with the bank and reports yes or no, without balances.

Aspsp, your bank, holds your account and enables payment orders; it must honor explicit consent and share account data with initiation service providers under open banking and PSD2.

Access to account acts as a secure api gateway for open banking that controls which third party providers can access bank data, with user consent and two-factor authentication.

Explore API banking through real-world examples like Alexa with Capital One and Facebook Messenger transfers, illustrating open banking via bank APIs and third-party fintech integration.

Learn how the general data protection regulation (gdpr) harmonises EU data privacy laws, governs processing of personal data, and enforces 72-hour breach reporting and penalties for non-compliance.

Examine the seven GDPR principles—lawfulness, fairness and transparency; purpose limitation; data minimization; accuracy; integrity and confidentiality; storage limitation; and accountability—and their impact on fintech data practices.

Explore the rights individuals have under GDPR, including the right to be informed, access, rectification, erasure, restriction, data portability, and objection to processing, plus automated decision making and profiling rights.

Explain GDPR penalties: 10 million euros or 2% turnover for breaches, and 20 million euros or 4% for major breaches, with Google's 15 million euro fine as an example.

Enable consumers to control their data, standardize formats, and foster digital economy growth by driving secure, seamless open banking through PSD2 and GDPR, boosting innovation and competition.

Identify the customer, fintechs, banks, and regulators as stakeholders in PSD2 and open banking, and explain how data portability and API access enable competition, customized products, and risk assessment.