Regulatory Compliance

WSO2 Open Banking complies with the following regulations: 

PSD2

PSD2 is the revised Payment Service Directive legislation administered by the European Commission and mandated in 2009. PSD2 requires Europe’s banks to give regulated third-party providers (TPPs) access to customers’ account information and payment initiation with the customers’ permission and consent.

Benefits of PSD2 include:

• Customers can manage their finances using third-party applications. For example, pay your bills using social media accounts.
• More consumer choices and better online and mobile payment methods.
• More opportunities for financial technology companies to introduce new and innovative banking services.
• Enhanced payment security.
• Ability to standardize the payment systems and impose limits on transaction fees to ensure lower costs for the consumers.

GDPR

The General Data Protection Regulation (GDPR) is a new legal framework formalized in the European Union (EU) in 2016 and comes into effect from 28, May 2018. GDPR effectively replaces the previously used EU Data Protection Directive (DPD). 

GDPR is applicable to any individual living in the EU and considers the following two aspects:

1. Processing of personal data belonging to an individual living in the EU
2. Free movement of personal data belonging to an individual living in the EU within the region

If you are new to GDPR, we recommend that you take a look at our tutorial series on Creating a Winning GDPR Strategy.

• Part 1 - Introduction to GDPR

• Part 2 - 7 Steps for GDPR Compliance

• Part 3 - Identity and Access Management to the Rescue

• Part 4 - GDPR Compliant Consent Design

For more resources on GDPR, see the white papers, case studies, solution briefs, webinars, and talks published on our WSO2 GDPR homepage. You can also find the original GDPR legal text here.