Page 10 - FintechAtlas2019

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Austria
Exploring the potential of Open Banking
Skyscrapers in Vienna, Austria
Open Banking and PSD2 are game-changers all over Europe and Austria is no exception. While PSD2 forced banks to open up their systems to allow customers to access and manage their accounts using the software of third party providers (TPPs), it also, simultaneously, established the basis for a whole new set of products, services and customer journeys.
Open Banking is still in its infancy on the Austrian market. The majority of banks in Austria only provide the mandatory PSD2 APIs on their developer portals. However, Raiffeisen Banking Group Austria is one step ahead and already offers its first premium “customer identity” API, which provides selected identity data to partners.
The FMA, the Austrian regulator, plays a special role as an intermediary between banks and TPPs in the area of PSD2. The FMA is very active, organising regular alignment meetings and mediating between banks and TPPs regarding the requirements of PSD2 APIs. To date, no Austrian bank has been exempted by the Austrian regulator from setting up a fall-back. Hence, screen scraping using a certificate is still allowed.
The Austrian Ministry of Finance set up a Fintech Advisory Board in 2018. The objective of the committee, on which representatives of Austrian banks are joined by insurers, fintechs, lawyers and universities, is to make Austria even
more attractive as a location to fintechs and blockchain and cryptocurrency companies. There are also plans to establish
a “regulatory sandbox solution” under the supervision of the FMA in September 2020. This will enable fintechs to make business models ready for market within a protected framework and under the supervision of national regulators.
Banks must now decide: Between opening up and cooperating with fintechs, startups and any kind of TPP in order to take advantage of new business opportunities and keeping their systems closed and sticking to the regulatory mandatory minimum of PSD2 APIs. Currently, there are only limited signs of an opening.
The Raiffeisen Banking Group Austria is actively seeking to cooperate with fintechs and startups, which are not seen
as a threat but as opportunities to offer new products and services that provide the most convenient and state-of-the-art experiences to its customers. The active support of co-working spaces such as weXelerate in Vienna or Tabakfabrik in Linz by the Regional Raiffeisen Banks (Landesbanken) offers a direct access to the fintech and startup scene.