What is AISP?

An Account Information Service Provider (AISP) is a type of third-party financial services provider enabled by the Revised Payment Services Directive (PSD2) in the European Union. AISPs offer a service that allows consumers to access and aggregate information from their various bank accounts and financial institutions into a single, consolidated view. This service aims to enhance financial transparency and empower consumers with a comprehensive understanding of their financial status.

AISPs access customers' financial data through secure Application Programming Interfaces (APIs) provided by the banks and financial institutions where the customers hold accounts. With the customer's explicit consent, AISPs can retrieve account information, such as balances, transaction histories, and other relevant financial data, and present it in an organized and user-friendly format.

The core benefits of AISP services include improved financial management, enhanced transparency, and better decision-making capabilities for consumers. By consolidating data from multiple accounts, AISPs enable users to see a holistic view of their finances. This comprehensive overview helps users track spending, monitor income, manage budgets, and identify trends or patterns in their financial behavior. For instance, a customer could use an AISP service to aggregate information from their checking account, savings account, and credit card accounts, gaining a clear picture of their overall financial health.

AISPs also contribute to increased competition and innovation in the financial services industry. By opening up access to financial data, PSD2 encourages the development of new financial products and services that cater to various consumer needs. Fintech companies and other AISPs can leverage this data to create innovative solutions for personal finance management, investment advice, and other financial services.

Security and privacy are paramount in AISP operations. Under PSD2, AISPs must comply with strict security standards to protect customer data. This includes using strong customer authentication (SCA) to ensure that only authorized individuals can access account information. AISPs must also adhere to data protection regulations, such as the General Data Protection Regulation (GDPR), ensuring that customer data is handled responsibly and transparently.

For AISPs to operate, they must be authorized by a national regulatory authority within the EU. This authorization process ensures that AISPs meet the necessary security, financial stability, and consumer protection standards. Once authorized, AISPs can provide their services across the EU, fostering a more integrated and competitive financial market.

In summary, an Account Information Service Provider (AISP) is a third-party service enabled by PSD2 that allows consumers to access and aggregate financial information from multiple accounts into a single view. AISPs enhance financial management, transparency, and decision-making for consumers while fostering innovation and competition in the financial services industry. They operate under strict security and data protection standards to ensure the safe handling of customer information.