Landsbankinn, which is one of the largest Icelandic banks, has teamed up with Salt Edge, a provider of Open Banking services. Through their partnership, the organizations will focus on complying with Icelandic law on the latest PSD2 legislation.
The Act on Payment Services, which incorporates the European PSD2 into Icelandic law, was introduced on November 1, 2021, and will become fully effective on May 1, 2022. After the regulation accompanying the Act has been implemented, banking institutions and Fintech firms will get authorized or obtain permission to access customer and business bank accounts to complete payments and offer banking data-related services.
By using Salt Edge’s PSD2 compliance solution, Landsbankinn will provide its clients the chance to check their bank accounts via apps and websites that are external to the bank and use these services to perform transactions via their accounts.
Arinbjörn Ólafsson, MD of IT at Landsbankinn, stated:
“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.”
After the provisions of the Act, Landsbankinn has created a sandbox which is hosted and operated by Salt Edge, enabling Fintech firms and other organizations operating in the industry to look into the functionality of different bank systems and to create various Fintech solutions. The sandbox enables developers to obtain account information and transaction details, test local and cross-border transactions, and more.
Andrei Scutari, Country Manager at Salt Edge, remarked:
“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.”