Executing European Open Banking legislation (PSD2)’s requirements remains an ongoing challenges for most financial institutions (FIs), which face a mandatory September 14, 2019 deadline to furnish regulated third party providers (TPPs) with access to transactional customer account data, or face the wrath of regulators.
Yet major obstacles remain: not least that a central electronic register of TPPs launched in March by the European Banking Authority (EBA) is not machine readable. For FIs, staying abreast in real time of which TPPs can legitimately (with customer permission) access account data, without falling prey to illicit data access, is a genuine challenge.
It is a challenge that one British startup, Konsentus sees a major opportunity in helping to resolve, and in a pre-Series A funding round announced today the company – founded by Bank of America and Datacard veteran Brendan Jones – won significant support from Mastercard, which led the multi-million round. (The exact size, nor names of other participants has not been revealed).
Mike Woods, CEO, Konsentus, says: “The RegTech market is growing at 45 percent-plus per annum and with 9,000+ Financial Institutions in Europe that must deliver PSD2 open banking, the demand for the Konsentus service is significant and this investment will support an accelerated growth plan across Europe.”