Building trustworthy fintech with consumer consent workflows

Europe's open banking initiatives, mandated by the Second Payment Services Directive (PSD2) and UK Open Banking regulations, have facilitated the integration of fintech applications with customer bank accounts by requiring banks to provide APIs for payment and account information. This regulatory framework encourages innovation beyond traditional banking services while ensuring security through standardized API templates and technical guidelines. Fintech companies must be accredited and use regulatory sandboxes for testing, and they must obtain consumer consent for data use, which can be revoked or modified at any time. The PSD2 requires Strong Customer Authentication (SCA) to protect consumers against fraud, necessitating two out of three elements: knowledge, possession, and inherence. Best practices for facilitating customer consent include tiered access, clear communication of data use intentions, and time limitations, with measurements of consent workflows providing insights into customer experience. Additionally, monitoring success rates, API response and performance rates, consent exit points, and usage activity helps improve user experience, while tools like New Relic offer real-time insights into optimizing customer journeys.