Financial Aggregators

1. What are financial aggregators and what do they do?

Financial aggregators are service providers that gives you access to all your financial products (bank accounts, cards, etc.) in one place, even if the products are contracted with different banks.

This service is divided into two parts:

• Payment Initiation Services (PIS):
  • This service allows you to make payments or transfers in a secure way from anywhere in the world.
  • This also means that payments will only go through when the product has been delivered or the service has been provided.
  • Therefore, this service maximizes digital sales and makes the transactions that we deem difficult today, such as internal sales and payments, easy.
  • The PIS significantly improves billing management. All receipts, tickets, delivery notes, proof of payment, are managed in one quick and efficient way.

• Account Information Services (AIS)
  • The most complicated part of the payment initiation services is understanding why consumers are willing to allow a third party to combine all their financial information. But the answer to this complex question is simple: for money, for advantages or both.
  • Would your business become slower if you knew everything about your suppliers’ financial situation?
  • Would you give 60 days of credit to a supplier if you knew you could make large layouts of money through online betting agencies? And if you knew that one account had received a Social Security embargo for the non-payment of its fees?
  • Would you be surprised if one of your banks suggests a loan at a particularly low rate, even though your account balance is low because the bank considers you to be very trustworthy?
  • Would you like to have 60 days of credit to pay your bills? Do you know that it is possible because your financial data proves you should be trusted? It is not a question of how much money do you have in your accounts, even if it is very small. It’s easy to predict that they will pay back the loan, even if they have a reduced cumulative balance. What matters is that the bank accounts have been opened for an extended period.
  • The ability to assess risk is not only done in banks. Some apps and algorithms are perfectly capable of analysing, in seconds, the risk of a supplier. But to do this, a lot more than just corporation tax or VAT needs to be analysed, just a bank balance will not suffice. However, a report on the transactions of all the bank accounts of a user over an extended period will suffice.

2. What is the difference between the Payment Initiation Services (PIS) and the Account Information Services (AIS)?

The Payment Initiation Services are service providers that allow the consumer to pay without using any form of payment (credit card or bank account), so instead the payment is made through an intermediate platform between the seller and the customer. This way both parties win because they can speed up the sale process.

The Account Information Service are also service providers that combine all the customer’s information (expenses, purchases, income) from their bank accounts into one place. Due to this service, the client can access and consult their financial information both easily and quickly.

3. What information is available to be compiled?

Bank accounts, deposits, credit cards, stocks, investment funds, pension plans and mortgages.

4. Why do you have to have financial aggregators?

Within the framework of the digital market, alongside the financial industry, a new type of payment initiation service providers has appeared, either acting as information aggregators or as a Payment Initiation Service.

These service providers speed up trade, lower costs, eliminate the intermediaries and provide e-commerce security. Effectively, if you don’t need a financial company’s intermediation for advice or to make payments, the costs are reduced. Also, with the new Directive, these new providers have the supervision by a competent authority and legal permission to act, which increases the security of their services.

Therefore, both reduction of costs due to removing the intermediaries and improved legal security provided by the Services Directive (PSD) allows the financial aggregators to work electronically and speed up trade.

5. Who and how do you benefit from aggregated online information? How do financial services benefit clients? What are financial aggregators and what do they do?

This service provides a low-cost solution for both merchants and consumers. More information, faster and higher quality. These companies allow you to have greater control and management of your account. This information is also independent of any bank, so it is not shared with other banks.

6. How do financial aggregators benefit from banks or other credit providers?

In the way in which a bank can enter into a sector (as BBVA is doing, for example), it will then benefit from its advantages (access to information of great financial value without having to pay the charges related to opening a payment account).

7. What role do the Financial Technology (FinTech) play in the aggregation of financial information? Are Financial technology companies more competitive than traditional banks in this area?

These new providers, under the new directive, can have direct communication with the customers of the bank. Either by carrying out transactions on their behalf or by accessing their account information, they are in a position that allows them to compete with traditional financial institutions.

However, banks are increasingly aware of the need to digitize banking and are beginning to incorporate these new services.

8. Can a third party freely access (if they have paid for it) the data that arises from financial aggregators?

Yes. As the PSD 2 Directive says, the information is the customers, so they can do what they want with it freely, including transferring it to third parties.

9. Can a customer refuse to have their information aggregated?

Yes. As has been previously noted, even if customers have their information, they do not have to allow the release of it.

10. What are the restrictions on the use of information by financial aggregators? What can financial aggregators do with that aggregated information?

The restrictions on the use of aggregated information are detailed on the articles 66,67 and 68 of the PSD 2 Directive and transposed in the articles 38, 49 and 40 of the RD 19/2018.

All, both banks and aggregators must comply with the General Data Protection Rules.

Applicable Regulation

• The applicable regulation is RD 19/2018 which transposes PSD2 into Spanish law.

Directive PSD2

• The Directive (EU) 2015/2366 of the European Parliament and the Council on payment services in the internal market, known as PSD2, develops the 2007 PSD, which established a European single market and strengthened its security. This new Directive, which repeals the previous one, seeks to deepen the security of the electronic market by promoting competition through its main development. This allows third parties other than financial institutions (TTP or Third-Party Providers) to intervene in payment and financial information services.

Is the Directive already transposed in Spain?

• Yes, through Royal Decree 19/2018

How are the financial aggregated services currently regulated in Spain?

• Through the previously mentioned regulation RD 19/2018.

11. Who are the main providers that offer this service in Spain?

Tink: Statistics and information directly from the leading European bankers. We are the first to offer Account Information Services (AIS) and Payment Initiation Services (PIS) on a single cloud-based platform. Aggregators of both Information and Payment.

Kontomatik: ‘Nearly’ met your revenue objective? We eliminate the ‘nearly. No longer do you need to connect to dozens of banks, with the Kontomatik API, you can access all your banking information wherever you are. You can access banking user data from more than 100 banks around the world. Discover the financial status of your customers and offer personalised solutions.

Instantor: Instantor is a platform created by the Swedish company Instantor AB. It is a tool which is used by many financial companies, as it allows them to verify a customer’s identity online and instantly evaluate their solvency. In this way, companies can obtain real-time information and financial analysis of the clients. Who uses Instantor?

Credit institutions (banks) that offer fast loans or microcredits, accounting companies, rental leasing companies, telecommunication companies.

Pich Verify: A mortgage broker that is an intermediary between a lender and a homebuyer.

Eurobits: Our aggregation and categorization service equips companies with the necessary tools to retain customers and the ability to digitally transform and create new revenue sources. On the 5th of February 2019, we obtained the AISP (Account Information Service Provider) Certification by the Bank of Spain, becoming the first Spanish company to achieve it. Our e-invoicing service provides companies with a secure and swift system to exchange invoices with their customers.

Fintonic: All of your finances in one place, monitor your spending and receive alerts that no-one else gives you. It is the first free credit score in Spain and Fintonic puts it in your hands. There is an unbiased and independent index that assesses how you use and manage your money. Your saviour is Don Finscore. We also have your dream insurance. At Fintonic, we believe in the large and clear print, in simpler and faster transactions and in experts who take care of the details. That’s how we should imagine the insurance sector.

Fpnatools: Financial Planning and Analysis’ PFM solution connects users of banks and merchants. Through an automatic analysis of the information, the system can present the commercial offers to the users who are most interested in them. The degree of segmentation is absolutely thanks to the categorizing techniques and the pattern generation developed by the company.

Other providers:

Mooverang: Mooverang is an app that allows its customers to store and manage their bank accounts, cards and financial information. www.mooverang.es

No Mas Tickets: It stores all your tickets on one safe and accessible place. You can then view them from the Web or through our app. Say goodbye to paper tickets! www.nomastickets.com

Quipu: The ultimate solution to run your business. Manage, invoice, and control your professional activity from one place with the help of an expert. https://getquipu.com/

Sabbatic: Global solution for automatic digitalization of invoices and tickets received, useful as mobility products and in the office. Comply with the immediate supply of information and forget about the physical proofs. www.sabbatic.es

Wiquot: Wiquot is a personal, fast, simple and free tool in which you can find and organise all your insurance, finance and telecommunications contracts. www.wiquot.com

BBVA One View: Add all of your bank accounts to one place so you can view and control your accounts at a glance. www.bbvaoneview.com

Santander Money Plan: An app for the control of your personal finances. All your accounts in a single app. Add your accounts and cards of other banks in a simple way. Manage your budget by assessing all bank accounts. www.bancosantander.es/es/particulares/banca-online/app/money-plan

Openbanks: All your finances in one place, in one glance and by categories. All your accounts connected in a secure environment. Your balances and transactions are constantly updated. Your expenses are sorted into categories. https://www.openbank.es/agregador-cuentas

Caixabank: Manage your finances with maximum comfort. Discover the most convenient and easy way to manage all your accounts, receipts and cards wherever you are. Connect with your money from a new point of view and reach goals without even realising it. https://www.caixabank.es/particular/bancadistancia/misfinanzas_es.html

Bankia: View the balances and transactions of all of your bank accounts, insight and credit, without having to electronically enter each bank individually. https://www.bankia.es/es/empresas/servicios/agregador-financiero