Under this European directive, European consumers can require their bank to share their data with other companies such as Cake. Your bank cannot refuse to do so. It is your data after all, so you get to decide how to manage it. PSD2 is, therefore, a benefit to you. 💪
Believing that banks currently have too much power because they have exclusive rights in terms of payment transfers, the European Union came up with the PSD2 directive. The goal is to reduce bank dominance; Europe aims to partly shift the control of banking data from the bank to the customer.
This directive, in fact, says that European banking institutions are obliged, when a customer asks, to share that customer’s account information with other companies that have received special authorization from the financial supervisory authority. In Belgium, that’s the National Bank of Belgium (NBB).
Cake was authorized (on July 9th, 2019) by the National Bank of Belgium (NBB) as a payment institution offering “payment initiation services” and “account information services” and is therefore registered as such in the NBB register. 🎉
This recognition followed a licence application in which Cake was able to demonstrate that it had fit and proper directors and appropriate organisation. This means that Cake must ensure it has appropriate measures in place for such things as internal control, compliance, (internal and external) audit, a European anti-money laundering policy, risk management policy, conflicts of interest policy, business continuity plan and IT infrastructure.