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Regulatory Compliance

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Last updated: Nov 25, 2019 by Former user (Deleted)Version comment
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WSO2 Open Banking complies with the following regulations: 

PSD2

PSD2 is the revised Payment Service Directive, which was mandated in 2016. It stems from PSD1, which was 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.

Some benefits of PSD2 include:

  • The customers can manage their finances using third-party applications, e.g., pay your bills using social media accounts. 
  • More consumer choices and better online and mobile payment methods.
  • More opportunities for the 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.

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.

CDR

The Australian Government introduced the Consumer Data Right (CDR) to give consumers more control over their data. CDR provides customers and small businesses a choice about how their data is shared with third parties and sets standards for a whole industry about what data should be made available safely. In doing so, CDR encourages competition between service providers, leading to better prices for customers and more innovative products and services.

The CDR will be rolled out sector-by-sector, starting with the banking sector. Further information on the CDR is available on the Treasury website at https://treasury.gov.au/consumer-data-right.

Specific examples of the benefits of a CDR might include:

  • Banking applications that analyse credit card customers spending and repayment behaviours to identify the best product for an individual, saving them money on high fees or obtaining better interest rates.
  • Applications that help customers understand and manage their energy use to save money on their power bills.
  • Comparison websites that identify a more appropriate internet or mobile phone plan taking into account each customer’s actual usage and budget.