Ozone API and Thistle Initiatives help FIs prepare for PSD3

16 Apr 2024

Open Banking API platform Ozone API and compliance consultancy Thistle Initiatives have formed a strategic partnership to help financial institutions get ready for the Third Payment Services Directive (PSD3) and achieve Open Banking compliance quickly.

Ozone API will work with Thistle Initiatives to ensure a smooth transition to PSD3 compliance for financial institutions, providing guaranteed updates to new regulatory requirements and API standards.

While specific details about PSD3 are yet to be published, it is expected to introduce governance relating to customer consent, such as requiring ASPSPs to maintain consent management dashboards, which is already supported by Ozone API.

The two companies also predict that PSD3 will likely clarify the application of Strong Customer Authentication and include metrics for improving the performance of Open Banking APIs.

Unlike its predecessor PSD2, PSD3 will be a regulation with binding legal force, which means that banks compliant with PSD2 will need to undertake “significant activity” to ensure compliance with the new regulatory framework, Ozone API and Thistle Initiatives said.

James Bushby, general manager UK, Europe and APAC at Ozone API, said: “The Thistle team has a deep understanding of the relevant regulatory landscape, and we look forward to collaborating with them to support financial institutions within the UK and across Europe with implementing scalable Open Banking solutions that open new revenue streams and facilitate sustainable growth, in compliance with PSD3.”

Ozone API’s founders played a role in developing the UK Open Banking standard, while Thistle Initiatives specialises in regulatory consultancy advice and guidance for firms seeking to expand into the payment services and e-money sector, including Open Banking.

“Ozone API stands out as a leader in Open Banking, playing a pivotal role in global standards development and being chosen by numerous financial institutions and central banks for their Open Banking implementations,” added Lorraine Mouat, head of payment services at Thistle Initiatives.

“Through our strategic partnership, banks can accelerate their compliance with PSD3, allowing them to capitalise on commercial opportunities sooner than anticipated.”

At the start of the year, Ozone API raised £8.5 million in a Series A round, led by growth equity investor Gresham House Ventures, to fund its global expansion.

Following the fundraise, Dame Jayne-Anne Gadhia, the former chief executive officer of Virgin Money, was appointed by Ozone API as chair of its board.