Fortuna Bank selects Luxhub as its open banking enabler

Luxhub together with Temenos will allow Fortuna Bank to expose the mandatory APIs (application programing interfaces) on time help Fortuna Bank to make use of the “Fall Back Solution” exemption as defined in the PSD2-RTS. Moreover, Fortuna Bank will be ready to begin discussions with external partners to build supplemental services towards its customers.

Open banking is a system that provides a user with a network of financial institutions’ data through the use of application programming interfaces (APIs). The Open Banking Standard defines how financial data should be created, shared and accessed. By relying on networks instead of centralisation, open banking helps financial services customers to securely share their financial data with other financial institutions. Benefits include more easily transferring funds and comparing product offerings to create a banking experience that best meets each user’s needs in the most cost-effective way. Open banking is also known as open bank data”, according to Investopedia.com.

In summary, PSD2 is a revision of the Payment Service Directive introduced in 2007 to create the Single European Payments Area. Continued innovation and digitalisation since then has led to new entrants on the market offering new online and mobile services. The problem was that many of these new players fell outside the scope of the PSD and, therefore, we not regulated by the EU. PSD2 is broader in scope and aims to improve security and fraud prevention for consumers.