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BNP Paribas Fortis is integrating consumer financial management software from financial services (fintech) firm Tink into its mobile banking apps as part of its plan to meet and benefit from the EU’s Payment Services Directive 2 (PSD2).
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By working with the fintech company, BNP Paribas Fortis, will be able to utilise Tink’s experience of deploying the app in the Nordic region, which was an early adopter of the technology.
The Belgian bank is working with Tink to integrate technology that will utilise data from customers’ multiple financial service providers to aggregate their finances. The PSD2 regulation, which came into effect earlier this year, meant banks have to make customer data available to third parties through application programming interfaces (APIs), if approved by the customer.
Tink is already enabling this in its native Sweden. In 2013, the startup launched aggregation technology to collect bank data – such as account details and savings rates – from multiple sources and build it into an app. The company says it has 500,000 users in Sweden, and its technology is used by Swedish banks such as Nordea, Nordnet and SEB as part of their mobile offerings.
BNP Paribas Fortis will update its mobile banking service – called Easy Banking App – with Tinks technology later this year. It forms part of wider plans to enhance user experience by taking advantage of PSD2.
BNP Paribas Fortis CEO Max Jadot said technology and changing legislation, such as PSD2, offer exciting opportunities. “Working closely with successful fintechs and integrating them into our ecosystem is part of the DNA of our bank,” he said.
“Tink has a strong focus on business to consumer and a proven track record with their consumer app in Sweden, with over half a million users,” he added.
In an interview with Computer Weekly, Tink CEO Daniel Kjellén said a combination of technology and consumer demand drove the market for apps such as Tink in Sweden, but added that PSD2 has spread it to other countries.
“In some markets, a lack of legislation has stood in the way of the consumer movement. In other markets, like Sweden, there have been aggregation services for a number of years,” he said.