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figo Announces “License as a Service” PSD2 Solution, RegShield

German banking service provider figo has joined the fight to ensure that fintechs and other third parties are able to make the most from the arrival of PSD2. The company announced its new “license as a service” solution – RegShield – which will enable figo to serve as a regulated partner for firms looking to offer or use payment initiation account information services (PSIP/AISP). This will allow figo’s partners to operate without having to apply for their own authorization.

Before the PSD2 deadline earlier this month, Cornelia Schwertner, Head of Governance, Risk & Compliance at figo warned, “Implementation of PSD2 is imminent and the license application period for companies is tight. So it is particularly alarming that many companies do not even know that they will soon be subject to authorization, let alone when. Importantly, Schwertner added, PSD2 implementation is a challenge for both fintech startups and more established players. For newer companies, the process of securing a BaFin permit can challenge the financial resources of smaller firms. Larger companies, on the other hand, typically find it difficult to integrate their own processes with a changing regulatory environment.

With RegShield, figo takes responsibility for “all relevant processes and licensing requirements,” giving third parties the ability to focus on developing their solutions rather than negotiating regulations. RegShield will provide for many of the authorization requirements including:

  • PSD2-compliant customer processes
  • Execution of internal audits to prepare for external examinations
  • Setup of governance and security policies
  • Management of security incidents
  • Regulatory and compliance expertise
  • Outsourcing controlling
  • Business continuity management

According to figo, more companies may be affected by the need to meet these requirements than they may think. In Germany, for example, companies looking to offer services this year are required to apply for authorization as PISP or AISP under the Payment Services Supervision Act (ZAG). And this is precisely where figo’s RegShield can play a role.

“Being touched by authorization requirements is a certainty for any company that can answer the following questions with a yes,” figo CEO André M. Bajorat said. “‘Do I offer an online service that includes display or processing of account information?’ ‘Does my service enable transactions on my customers’ bank accounts?’ or ‘Do I need online banking login information for my product or service?'” Find out more about figo’s RegShield offering.

At FinovateEurope 2013, figo demonstrated its consumer-facing, cloud-based service that aggregates bank and payment accounts, enriches transaction data and gives customers real-time notification. The company’s technology complements the rise of open banking by making it easier for third parties to access a wider range of financial resources, and enabling banks to develop value-added products and services for their customers.

“The tried and true technical solutions which we already offer, which preeminently match up to the basic idea of PSD2, show how forward-looking our approach is,” the company observes in an introductory note on its website.

Last August, the company announced that Consorsbank would leverage technology from figo to power its multibanking service. In June, figo was named to FinTechCity’s FinTech50 for 2017. Founded in 2012, the company has raised more than $12.5 million in funding and includes Berliner Volksbank Ventures and Deutsche Borse among its investors.