What is PSD2?
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PSD2 stands for Second Payment Services Directive, and it’s EU (European Union) wide directive which dictates that you (end user) own your account data, and not your bank.
With PSD2 all institutions with a banking license have a duty to ensure that they provide secure, regulated and free access to open banking APIs through which end users have a right to make their data accessible to other service providers. This is information movement is carried out by licensed Third Party Providers (TPP's) by integrating directly with open banking APIs and then allowing companies to use these connections in their applications/platforms, where end users can then benefit from this functionality.
Nordigen plays the role of TPP by sitting in between your bank, yourself and your service provider to enable this secure exchange of your data with your consent.
What does this mean for end users?
- Significantly improved security for sharing bank data
- Access to more convenient services and tools
- Full control of how their data is shared and with whom
What does this mean for companies?
- Being able to build more customer centric solutions
- Freedom to create innovative applications and tools
- Access to a regulated and safe framework for aggregating customer bank account data
Open Banking Glossary
Read about commonly used PSD2 terminology in our blog post.