Banco de Portugal analysed open banking challenges for bank customers in an international seminar

The seminar Open banking: developments, impacts and challenges was held on 8 November 2018, in Brasilia, and followed the FinCoNet Annual General Meeting.

According to the new European payment rules applicable to the Portuguese legal system since 13 November 2018, credit institutions may share customer data – upon the customers' consent – with other entities through dedicated digital platforms. This exchange of information called 'open-banking' paves the way for new entities to emerge on the market, which use customer data to offer new payment services: entities providing payment initiation services and entities allowing bank customers to consult aggregated information on their accounts. These entities are subject to the supervision of Banco de Portugal.

Lúcia Leitão, in her panel session in Brasilia, analysed the new rules applicable to open banking in the scope of the new Payment Services Directive and presented the main challenges these rules pose to bank customers and conduct supervisors, namely in terms of security and privacy.

The Head of the Banking Conduct Supervision Department stressed in particular the need to implement procedures enabling strong customer authentication and ensuring that institutions use customer data in compliance with the consent given.