How to choose account information service providers?

account information service

Account Information Service Providers, aka AISPs, is one of the main types of Third-Party Providers or TPPs. Account information service providers, along with Payment Initiation Service Providers, aka PISPs, were introduced into the regulatory framework with the revision of the Payment Services Directive 2015, known as PSD2. These services providers ensure consistent levels of consumer protection across the payment value chain and elevate access to new products and services in the financial sector.

What exactly is an AISP?

Account information service providers or companies with an AISP license are financial institutions providing access to the consolidated financial information of the consumer on one or more accounts that are held with other institutions, as long as the consumer permits them. Licensed account information service provider acts as an intermediary between account-holding financial institutions and other financial or third-party services providers while allowing access to consumers‘ account information for analysis and aggregation purposes. Also, unlike the payment initiation service providers, which instigate payments or transfers on the consumer’s behalf to their online banking account, AISPs cannot initiate payment or move money. Most importantly, AISPs can only receive users’ account information and share it with other third parties if consumers themselves, not the financial institution, provide explicit consent.

How to choose the right AISPs?

As already mentioned in the beginning, the AISP is based on the PSD2. PSD2 defines the requirements that all providers of account information services must meet.  First of all, when choosing an AISP, keep in mind that a license is required in order to provide account information services. A list of local and global companies that have AISP licenses can be found on the internet. Secondly, an account information service provider must comply with data protection legislation.  Keep in mind that account information service providers can access, collect and transfer your personal and financial data to other third parties only after you give explicit permission to do so. An AISP must allow you to know and manage who has access to your data, how long, and for what purpose it is used. Besides, your chosen AISP should be able to offer a convenient and easily understanding overview of your financial situation with maximum security. Also, as noticed before, these service providers cannot initiate any payments into or out of your account. Finally, choose AISPs that provide transparent and reliable service descriptions, including details, features, benefits, legal and technical constraints, and rules of the services.

The views expressed in this article are those of the authors and do not necessarily reflect the views or policies of The World Financial Review.