The license means that Yolt can now independently offer open banking services across the EU, rather than under the license of our shareholder (ING), which was previously the case.
Yolt already holds a PSD2 license from the FCA, the conduct regulator in the UK. With the two licenses, we are able to independently serve open banking customers across the EU as well as the UK. This builds on our position as a leading pan-European open banking provider with extensive bank coverage across key European countries.
What it means for businesses seeking to offer open banking solutions across Europe
Businesses can technically get their own PSD2 licences and build their own open banking API connections.
However, for PSD2 licenses, there are long application processes (nine months+), and operational changes required. Some things organisations need to look at include Know Your Customer (KYC) compliance, security risk management, anti-money laundering and combating financing of terrorism, and so on.
And when it comes to building the API connections, similarly complex challenges exist. For example, there are different standards for APIs in different markets, and API connections don’t just need to be built, but also maintained. This leads to the need for an ongoing, long-term dedication of development resources to ensure your API connections are always up to standard.
Therefore, for the vast majority of businesses, it makes sense to partner with a third-party provider (TPP) for open banking, such as Yolt.
You can read more on pros and cons of this topic here: Buy versus build: what to consider with open banking
What Yolt offers
In addition to our DNB and FCA licenses, Yolt offers connections to over 600 banks across Europe, including 95%+ coverage in the UK and 90% in most major countries. We are continuously building out new connections, maintaining existing ones, and supporting clients as they look to expand across EU markets.
Beyond the API connections themselves, businesses working with Yolt benefit from solutions such as:
- Cashflow Analyser, an online tool that provides insights into prospects and customers’ cash flow. Read more
- Account Information Services (AIS), which opens up a range of opportunities for personalised offers, smart decisioning, cross- and upsell, improving internal processes, and innovating your business. Read more
- Open banking payments, a fast, transparent, and secure payment method. Read more
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