This collaboration aims to ensure secure and transparent financial solutions for the company’s customers from the UK.
By partnering with Salt Edge, Raisin’s goal is to improve transparency and accessibility in its financial services while delivering scalable solutions for regulatory compliance and business growth for its UK platform. Salt Edge’s Open Banking compliance offering helps Raisin meet FCA standards, ensuring data protection for users.
In addition to meeting Open Banking requirements, Raisin utilised a full-stack toolkit to maximise regulatory opportunities, which includes an environment for TPPs, with support managed by Salt Edge. The toolkit features a client dashboard for performance monitoring and a TPP verification system to control and secure access to data.
In the UK, Open Banking is regulated by the FCA (Financial Conduct Authority). Its role includes protecting consumers, keeping the industry stable, and promoting healthy competition between financial service providers.
In 2016, the Competition and Markets Authority (CMA) published a report on their investigation into competition and innovation in the retail banking industry. They noted that big banks dominated the market and consumers, and small businesses would benefit from increased competition.
In response to this issue, CMA and the UK government mandated banks to implement common standards for Open Banking. This would ensure the existence of standard APIs that allow customers to securely share their financial data and initiate transactions. Compliant companies use this APIs to offer new services to users and SMEs, increasing competition.
Open Banking regulations demand financial institutions to obtain customer consent before sharing their data with TPPs. Other requirements include the standardisation of APIs, rigorous security protocols to prevent data breaches, regulatory oversight such as regular reporting and adherence to operational standards, and strict definitions of the rights and responsibilities of all parties involved.
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