Landsbankinn prepares for PSD2 with Salt Edge

Landsbankinn, the largest Icelandic bank, has signed with Salt Edge for PSD2 compliance.

Landsbankinn will use Salt Edge’s PSD2 Compliance Solution

The new Act on Payment Services, which transposes the European PSD2 into Icelandic law, entered into force on 1 November 2021 and will take full effect on 1 May 2022.

Once the regulation accompanying the Act is fully implemented, banks and fintechs will gain authorised access to customer and business bank accounts to initiate payments and provide banking data-related services.

Landsbankinn will use Salt Edge’s PSD2 Compliance Solution and will offer its customers the ability to view their bank accounts in apps and websites external to the bank and use these services to make transfers from their accounts.

Salt Edge is described by Arinbjörn Ólafsson, managing director of IT at Landsbankinn, as “a reliable and experienced partner” to ensure compliance.

He adds: “The Act enhances competition and consumer protection in financial markets and supports innovation in the payment market. We aim to harness technology to make finances smarter and more approachable.”

Following the provisions of the Act, Landsbankinn has opened a sandbox hosted and operated by Salt Edge, allowing fintechs and other companies in the sector to explore the functionality of various bank systems and to develop innovative fintech solutions.

The sandbox allows developers to retrieve account information and transaction statements, and test domestic and cross-border transfers.