Navigating the open banking landscape requires a firm grasp of the intricate regulatory framework. At K2, we specialize in guiding you through the intricacies of the Payment Services Regulations 2017 (PSRs 2017), Electronic Money Regulations 2011 (EMRs), and the relevant FCA rules and guidance that govern the dynamic open banking sector.

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Our seasoned team boasts comprehensive knowledge of these regulations, ensuring that your operations seamlessly align with the required standards. We work in close partnership with you, thoroughly evaluating your unique business activities to pinpoint the most fitting licence for your open banking endeavours.

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Whether you're seeking an AISP (Account Information Services Provider), PISP (Payment Initiation Service Provider), or RAISP (Regulated Account Information Service Provider) licence, we offer an in-depth analysis of the licensing options at your disposal. Our guidance empowers you to select the licence that perfectly harmonizes with your business objectives, allowing you to chart your course in the open banking domain with confidence.

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Understanding the Role of an Account Information Service Provider (AISP)

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An Account Information Service Provider (AISP), often associated with an AISP license, is a specific type of financial institution that facilitates access to a user's financial data across accounts held with various institutions. The scope of an AISP is broad and can encompass entities such as Electronic Money Institutions (EMIs) and Payment Institutions (PIs) that offer Account Information Services upon receiving authorization from a national regulatory authority. To avoid confusion in the UK, a company exclusively registered with the FCA to provide Account Information Services is designated as a Registered Account Information Service Provider UK (RAISP UK).

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A company equipped with an AISP license serves as an intermediary, connecting different institutions and granting users "read-only" access to their financial information. AISPs function by collaborating with regulated firms that provide the accounts, referred to as Account Servicing Payment Service Providers (ASPSPs). ASPSPs encompass a range of entities, including banks, building societies, payment institutions (PIs), e-money issuers, and credit card providers. Through this network, AISPs enable users to access and manage their financial data while upholding stringent security standards.

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Understanding the Role of a Payment Initiation Service Provider (PISP)

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A Payment Initiation Service Provider (PISP) is a distinct category of financial institution that offers users the ability to initiate payments on accounts held with other financial institutions. Unlike its closely related counterpart, the Account Information Service Provider (AISP), a PISP enables users to actively initiate actions that trigger transactions.

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The primary objective behind Payment Initiation Service Providers (PISPs) is to enhance the ease of use and accessibility of financial resources for customers. Acting as intermediaries, PISPs bridge the gap between Account Servicing Payment Service Providers (ASPSPs) and users, providing streamlined access to the user's payment accounts in a unified interface. This unified approach simplifies the execution of payments, contributing to a seamless financial experience for users.

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ASPSPs encompass a range of entities, including banks, building societies, UK Payment Institutions (PIs), UK Electronic Money Institutions (EMIs), and credit card providers. By connecting users with these ASPSPs, PISPs empower individuals to initiate transactions more efficiently, fostering greater financial convenience and control.

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