Landsbankinn chooses Salt Edge to become PSD2 compliant
Landsbankinn, the largest Icelandic bank, has joined forces with Salt Edge, a pioneer in open banking, to comply with Icelandic law on the PSD2 legislation.
The new Act on Payment Services, which transposes the European PSD2 into Icelandic law, entered into force on November 1, 2021, and will take full effect on May 1, 2022. Once the regulation accompanying the Act is fully implemented, banks and fintechs will get authorised access to customer and business bank accounts to initiate payments and provide banking data-related services. Leveraging Salt Edge’s PSD2 Compliance Solution, Landsbankinn will offer its customers the possibility to view their bank accounts in apps and websites external to the bank and use these services to make transfers from their accounts.
“Landsbankinn is enthusiastic about technological development that helps us simplify life for our customers. With that in mind, we have chosen to work with Salt Edge, a reliable and experienced partner, to comply with the Act on Payment Services. The Act enhances competition and consumer protection in financial markets and supports innovation in the payment market. Our collaboration with Salt Edge gives us access to international expertise that in turn enables us to enhance our robust and agile customer service. We aim to harness technology to make finances smarter and more approachable, as always placing customer satisfaction first”, says Arinbjörn Ólafsson, Managing Director of IT at Landsbankinn.
Following the provisions of the Act, Landsbankinn has opened a sandbox, or development environment, hosted and operated by Salt Edge, allowing fintechs and other companies in the sector to explore the functionality of various bank systems and to develop innovative fintech solutions. The sandbox allows developers to retrieve account information and transaction statements, test domestic and cross-border transfers, and more.
“As a pioneer in open banking, Salt Edge is thrilled to assist Landsbankinn on its way to becoming one of the open banking trailblazers in Iceland. Becoming compliant means much more than just fulfilling legal requirements, it is an amazing opportunity for the whole region to offer the ultimate banking experience and boost local financial wellbeing. Landsbankinn, an ever-smarter bank, will continue to change and develop in harmony with the community it serves, and Salt Edge is honoured to be a part of such an important milestone”, says Andrei Scutari, Country Manager at Salt Edge.