K and H is one of the first players in Hungary to open a development portal and test environment, offering access to new-style operators, in line with the second payment directive (PSD2).
The purpose of the site is to help users find their way in the open interface (API) environment developed specifically for enquiring on banking data and initiating payments, as well as to offer support to third parties during the development process. Digitalisation and innovation are cornerstones of K&H’s business strategy.
The next few years will bring about dramatic changes in payment services. In line with EU guidelines, banks are obliged to allow consenting customers to use the services of third parties for payments initiated from current accounts accessible online, and to make the details (including the balance and payment transaction details) of online customer accounts available, free of charge, to third parties gathering and presenting such account information. In the longer term the EU expects these measures to boost competition and innovation in the financial sector.
The third parties mentioned above may be other banks or non-banking players (such as fintech companies, retailers or technology companies). In possession of the express consent of customers, such third parties may initiate payments or gather and display account information for the account holder customer; thus creating competition to electronic and mobile banking solutions serving the same purpose. In the interests of customers authorising them to do so, K&H will ensure access to the bank accounts held by K&H for information and payment purposes via a dedicated, open interface (K&H open API – application programming interface).
With a view to implementing the above steps, on 28 February 2019, K&H was one of the first players in Hungary to open its test environment and development portal to the new-style operators defined in the 2nd payment directive (PSD2). In line with the PSD2 directive and international standards, the portal was set up in English. The purpose of the site is to help users during the development period find their way in the open interface environment developed specifically for enquiring on banking data and initiating payments. Access to the test environment is subject to registration.
“Open banking will have a significant impact on our lives and, as a leading financial provider, it is only natural that K&H wishes to grab the opportunities offered by the directive at the earliest opportunity, ensuring easy and smooth access to customers. By becoming one of the first plyers to open up the test environment, we have taken a big leap towards compliance with the conditions governing the go-live of PSD2 in September 2019. To facilitate further innovation, we are open to co-operating with other market players, be it fintech companies or other financial service providers. We are already actively working with fintech companies and also with third-party partners active in the financial sector and beyond. This is a natural, everyday phenomenon for us, as innovation and digitalisation are the cornerstones of our strategy. This is confirmed by numerous new services introduced over the past few years, such as our mobile bank, the mobile wallet or the robotised, fully on-line cash loan, – just to highlight a few most recognised by the general public”, explained on the occasion Balázs Németh, Head of the K&H Operations, Technologies and Retail Credit Management Division.
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