Open banking in a commercial bank

We advised the Commercial Bank on the following project:

ADVISING ON THE IMPLEMENTATION OF OPEN BANKING SERVICES IN A COMMERCIAL BANK

• We advised a commercial bank on a project involving the implementation of an open banking service (AIS), e.g. for the purposes of creditworthiness assessment, customer identity verification and marketing activities, as well as to support similar processes in other companies within the group of companies of the bank.
• The AIS service is an Account Information Service, introduced by the PSD2 Directive as part of open banking.
• Thanks to this service, the payment account holder may allow the bank to download the user information directly from electronic banking platform during the application process instead of asking the user to provide such information. Before downloading the information, the user is redirected to the website of their bank to approve such download. The bank intending to obtain such data may retrieve them on its own, which constitutes the provision of the AIS service to the user applying for another banking product (account, credit, card, etc.),
• The goal of the bank was to improve innovation and leverage new regulatory capabilities to provide customers with a faster onboarding process, as well as to develop internal processes in analytics, debt collection and marketing.

The advisory services of DLK Legal included:

• development of the concept and feasibility study of using open banking services in the operations of the bank, including evaluation of possible variants of making the AIS service available, boundary conditions for particular models, rules for further processing of imported data and rules for profiling users in compliance with the Banking Law
• supporting the bank in discussions with the technology provider, e.g. with regard to the functional requirements of the contract, model of cooperation, implementation and acceptance procedures, licensing of intellectual property rights, access to source code, remuneration settlements, SLA, maintenance and servicing services, and regulatory aspects of the implementation (outsourcing, bank secrecy)
• preparation of legal documentation for the AIS service
• ongoing responses to questions from the bank regarding legal aspects of the project