FinTecSystems Receives BaFin Permission as an Account Information Service Provider and Payment Initiation Service Provider

  • FinTecSystems is one of the first FinTechs to receive full regulatory authorisation
  • The banking API provider enables its customers to use the license via the PSD2 License as a Service model

Munich, 5th March 2019 – FinTecSystems (FTS), one of the leading banking API providers and experts in the field of financial data analysis, received BaFin authorisation on 1st March 2019 as an Account Information Service Provider and Payment Initiation Service Provider. This enables the Munich-based company to offer its full range of services in a secure regulatory environment – from digital bank information to payment initiation. Having received authorisation from the supervisory authority, FTS will immediately strengthen its “License as a Service” (LaaS) model: FTS customers can now use the BaFin license as an Account Information and Payment Initiation Service Provider. With the PSD2 License as a Service, FinTecSystems brings companies such as billing and accounting programmes, factoring providers, lending platforms and the like under its own regulatory umbrella. This way, they comply with the BaFin requirements without having their own license. With the LaaS model, the companies concerned can offer their services in conformity with PSD2 – a further aspect of this extensive service offering.

“We are so pleased to have received BaFin authorisation after all our hard work. Since it was founded in 2014, FTS has been offering Software as a Service models as well as integrations conforming to regulatory requirements. The authorisation that has now been granted was the missing building block for us. This authorisation enables us to add another service to our customer-centric offering: Under the ‘umbrella’ of our PSD2 license, customers, including numerous FinTech companies, can offer their services in a legally compliant environment without having to deal with complex regulatory, technical or contractual challenges”, explains Dirk Rudolf, Managing Director and Founder of FinTecSystems.

In April 2018, FinTecSystems applied for the BaFin license as an Account Information and Payment Initiation Service. With the PSD2 License as a Service, FinTecSystems now offers its customers lasting legal security in a smart way: All FTS customers who opt for this solution are tested and receive a certificate including a usable seal (“certified partner”) after successful compliance and KYC testing by FinTecSystems. Furthermore, companies also eliminate the cost of legal advice and the resources required for the time-consuming licensing process. FinTecSystems, which sees itself as an infrastructure partner for banks, FinTechs and financial service providers, is thereby propelling the digital transformation of the financial sector through regulatory security and support of new business models.

Domonda, a company specialising in automated accounting, is one of the first companies to start using the PSD2 License as a Service provided by FTS.

“For us at Domonda, being able to use the PSD2 license provided by FinTecSystems is of paramount importance. We automate accounting and payment transactions for start-ups, scale-ups and digital leaders across the DACH region. FinTecSystems’ unique selling point is its comprehensive bank coverage and data quality. With the PSD2 License as a Service, FinTecSystems demonstrates absolute customer focus and a partnership approach to cooperation. We hope to establish a long-term relationship with FinTecSystems – the extensive expertise of the FTS team was what convinced us”, explains Michael Haller, CEO of Domonda GmbH.

History of the FTS founders decisive for the origins of PSD2

The founders of FinTecSystems have long-standing experience in the area of banking and payments. In 2005, Dirk Rudolf und Stefan Krautkrämer were some of the first employees to develop the payment service “SOFORT Überweisung” into one of the leading internet payment methods in Europe. The bank-independent payment method was one of the main reasons behind the European Commission’s decision to liberalise electronic payments. In 2014, Dirk Rudolf und Stefan Krautkrämer founded FinTecSystems and have since chosen to specialise in Payment Initiation Services and the fully automated financial analysis of online banking data. With the help of a PSD2-compliant API, FinTecSystems covers all banks (more than 5,000 credit institutions, 99.5 percent bank coverage, around 100 million online banking accounts) in Germany, Austria, France and Spain.

About FinTecSystems
FTS is a B2B Fintech, founded in 2014 and licensed by BaFin as a payment initiation and account information service since 01 March 2019. FTS is specialized in open banking infrastructure and data analysis. With our digital infrastructure and leading machine learning technology, we prepare account data in a way that enables companies to make better, data-driven and automated decisions. We are the market leader in the DACH region in open banking with access to over 6000 banks. More than 150 companies place their trust in us, including banks such as Santander, DKB and N26 as well as all national comparison platforms. For example, our products accelerate loan commitments, we minimize payment default risks and we categorize revenue data for our customers in real time so that it is meaningful.