Permission Dashboards is set to give banking customers more control over their financial data and which third-party providers have access to it. This article provides an overview of Permission Dashboards, and insights from an industry expert.
Do you know who has permission to your banking data? Probably not. Today, the financial landscape is moving faster than ever. As consumers, we accept terms and conditions for all types of third-party providers. For instance, instant payment services, credit scoring companies, and loan comparisons. With the rise of open banking and open finance, regulators are keen to increase end-user control over who can access their data, which puts more pressure on account service providers and their technological infrastructure.
This brief article provides an overview of Permission Dashboards, exploring their potential and challenges. Peter Carlstedt, Head of Product Tech at Open Payments, shares his insights on Permission Dashboards and what lies ahead.
Permission Dashboards and the new payment service package
In essence, Permission Dashboards are interfaces provided by the user’s account service provider that show which TPPs (third-party providers) can retrieve data on behalf of the end user and help initiate payments when end users approve through SCA. These could, for instance, be visualized in a banking app. Permission Dashboards are introduced by the EU’s new payment service package, including PSD3, PSR, and FIDA with the aim of increasing user control, transparency, and security.
When analyzing the current market landscape and industry readiness, the Nordic region distinguishes itself from the rest of the EU. For example, PSD2 has been harmonized in the Nordics, while local interpretations and solutions have been made in other regions. This means that with stricter legal requirements around Open Banking, standard market practices will be needed throughout the Union.
- Customer expectations of smart, smooth digital solutions are constantly increasing. Therefore, implementing only the bare minimum regarding Permission Dashboards or any other regulation risks customers switching service providers. However, the account service providers are not alone. Tech-driven TPPs can provide integrations and interfaces, serving as the glue between service providers and harmonize the ways of working, says Peter Carlstedt at Open Payments.
Flexible tokens could be the future
Today, when customers permit TPPs to collect banking data from their bank, they use a standardized token. This gives the TPP the right to receive data such as account number, balance, and transaction history for 180 days. But is giving up all your data always necessary?
Flexible tokens are a widely discussed concept within the industry. By enabling granular permissions and time-bound access, they reduce the risk of data misuse and align well with regulations like GDPR, PSD3, PSR, and FIDA. For instance, a TPP can be permitted to gather transaction history between two dates, only for one day. However, implementing flexible tokens comes with challenges.
- Mostly everyone agrees that flexible tokens are the best solution, whether you ask banks, TPPs, or end-users. The challenge is simply technological resources in combination with aligning the different interpretations of implementation. I firmly believe in co-creation, especially if all stakeholders can come together, says Peter Carlstedt.
In conclusion…
Permission Dashboards will give banking customers more control and security over their financial data. These tools will help meet regulations, and customer demands for seamless digital services as open banking grows. Flexible tokens offer exciting possibilities, but their success will depend on collaboration between banks, third-party providers, and industry experts.
Contact us at 421 or Open Payments if you want to continue the discussion and learn more about how we can help you succeed with Permission Dashboards.
About Open Payments
Open Payments combines Open Banking and ISO integrations into one single API, offering seamless connectivity to banks and financial institutions. We make it easy for ERPs to offer smarter and more efficient solutions for B2B payments and data management. Our secure and reliable infrastructure saves time, reduces costs, and keeps businesses running smoothly. Read more about Open Payments here.
