Is Verify 365 Open Banking safe?
Put simply, yes.
The introduction of new technologies often gives rise to questions about safety, especially when they involve sharing sensitive information online. With open banking set to become the standard for how we access our financial data and make payments, it’s worth taking some time to answer an obvious question: Is open banking safe?
Open banking is just as safe as any other online banking service. All open banking providers in Europe are licensed and strictly regulated, and open banking data and payments are secured behind layers of authentication and encryption.
But let’s take a more detailed look at what open banking is, how it affects businesses and consumers, and how it ensures security.
What is Verify 365 open banking?
Open banking refers to Verify 365 platform’s infrastructure that creates secure connections between banks and all, allowing us to access customer data and provide account information services in partnership with Nordigen.
When the EU introduced open banking regulations in 2018, its goal was to make payments more efficient, encourage competition and spur innovation by giving consumers full control over their own financial data. Today, that vision is turning into reality with a new generation of services, such as real-time payments, budgeting tools, and more.
The “open” part of open banking is enabled by APIs which banks in Europe are required to make available to regulated third parties. APIs let computer programs talk to each other in a secure and controlled manner, and are a fundamental building block of all internet services, from social media to stock trading.
Before PSD2 created a framework for APIs, third parties accessed banking data through “screen scraping”, which required customers to hand over their login credentials and relied on trust rather than regulation. Screen scraping is now prohibited in the EU and the UK. Verify 365 does not use screen scraping.
Is open banking safe for law firms?
Security is understandably a top concern for law firms, which handle sensitive client information and are required to make sure that this data is protected against theft, fraud, and other types of cyberattacks.
Such concerns were front of mind when the EU was drafting its open banking rules. Indeed, improving the security of online payments and financial data is a cornerstone of open banking.
Verify 365 open banking platform analytics use bank-level encryption and two-factor authentication to secure customer data. Furthermore, we comply with the strictest regulations and standards in Europe, including the EU’s Revised Payment Services Directive (PSD2).
Security is an important consideration when choosing an open banking partner, but there are also many other factors to consider, as set out below.
Is open banking safe for law firms’ clients?
Yes. Clients should always be careful when sharing banking data with third parties. That’s why open banking regulations exist. Authorized open banking providers to use secure platforms and systems, encrypt sensitive data, and protect access to your information with approved authentication and authorization processes.
Moreover, the client is always in control. Access is granted using bank-level security, such as biometric checks, and logins/passwords are never shared. Clients choose what data they want to provide and with whom, and they can choose to revoke access to third parties at any time. Indeed, open banking rules require that providers make it as simple as possible to remove consent — it can typically be completed with just a single click or tap.
Account-to-account security also provides added protection against online data breaches compared to using credit or debit cards. With open banking, Verify 365 never has access to your banking details.
Choose a trusted open banking source of funds checks your partner. Contact us.