 license was introduced under the European Union’s revised payment directive in January 2016.){kind=link}
The AISP (Account Information Service Provider) license was introduced under the European Union’s revised payment directive in January 2016. It allows companies to access and aggregate consumer bank account information with their consent.
It’s worth noting that while AISPs make it possible for bank account information to be read, they do not allow businesses to access, withdraw, or move money around. All they can do is look at the data presented to them.
This article will delve into why AISP licenses matter for businesses, so you can decide whether now’s the right time for you to apply for one or not.
Builds Trust
Open banking builds trust. Obtaining an Account Information Service Provider license demonstrates that your business is overseen by financial authorities, which means you have to follow regulatory compliance conditions. It also shows you are compliant with PSD2 and Open Banking regulations.
When you run a business, you need to give consumers the confidence of knowing that you take online security very seriously. An AISP license shows them this. It also increases confidence with collaborators, partners, and investors.
Secure Access
It is illegal to access the bank accounts of customers without their permission. Obtaining an AISP license allows you to legally and securely access accounts. Accessing accounts with permission isn’t enough – you need to access them safely. If criminals have hijacked your devices, they could steal customer information and use it to commit fraud.
In addition to an AISP license, it’s important to take cybersecurity very seriously. There are many different things to know about cybersecurity. The main one is that you don’t have to tackle it alone. You can hire an MSS (Managed Security Service) to take care of your digital assets for you.
Strengthens Data Protection
Data is a commodity. It’s bought, sold, and stolen. When you work with customer data, you must protect it. A good way to strengthen your business’s data protection policies is to invest in an AISP license. An AISP license will come with training that helps you to better understand how to protect consumer data.
As well as an AISP license, it’s worth taking a course in general data protection. Also, make sure that you invest in the highest quality cybersecurity defences that you can. An AISP license in combination with these things can do wonders for your reputation and help you to keep consumers safe.
Reduces Risks
When you run a business, you always need to think about the risks you face. If you do not consider risks, there is always a chance that things will go wrong. Risk management is therefore an important consideration. Effectively managing risks can be done by investing in things like AISP licenses, which keep you in line with data management regulations.
An AISP license gives you access to data that you can use to grow your business and learn more about your customers. A good way to mitigate risk is to hire risk management professionals and pay them to take care of your business for you.
Improves Insight
As a business owner, you constantly need to be thinking about ways in which to improve your insights into your business. If you do not know what is going on with your business, how are you ever going to improve sales and achieve financial success? And the key to knowing what is going on within your business is to know your customers well.
By gaining access to the bank accounts of your customers, you can more effectively see how they are managing their finances and figure out what their budgets are. It’s especially important to know what customers are doing with their money if you extend credit to them. Looking at a snapshot of their finances can help you to decide whether or not to give credit to certain customers.
Enhances Reputation
Obtaining an AISP license can be one of the best things you can do for your business. This is because it shows commitment to your customers and a commitment to delivering the highest quality service that you can.
There are many other ways in which you can give your business’s reputation a boost, too. Try to find as many as you can. Another way to do this is to hire a consultant. A consultant will be able to work closely with your business to help ensure that you take care of data and present your company in the best way possible to your customers.
AISP licenses make it possible for you to access open banking information. The data you can extract from open bank accounts can do wonders for your business, its reputation, and its overall performance. Consider obtaining one today.