Icelandic bank Landsbankinn has chosen financial API platform Salt Edge to become compliant with PSD2, and to be able to offer customers the ability to view their bank accounts in apps and websites external to the bank and make transfers from their accounts.
The new Act on Payment Services, which transposes the European PSD2 into Icelandic law, entered into force on 1 November this year 2021 and will take full effect on 1 May 2022.
Arinbjörn Ólafsson, managing director of IT at Landsbankinn, said: “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.”
Landsbankinn has opened a sandbox, which is hosted and operated by Salt Edge, and allows fintechs to explore the functionality of various bank systems and to develop innovative fintech solutions.
It also enables developers to retrieve account information and transaction statements, as well as to test domestic and cross-border transfers, Salt Edge said.
“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,” added Andrei Scutari, country manager at Salt Edge.
“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.”
The National Treasury of Iceland holds a 98.2% share in Landsbankinn.