In September 2019, PSD2 went live in the EEA. France undoubtedly has a thriving Fintech ecosystem and major French banks already offer open banking.
Open banking is banking practice that securely shares financial information such as consumer banking, transactions and other financial data to third-party financial service providers (Estevez, 2020). Sharing data is done through the use of application programming interfaces (APIs) and only with the consent of customers (The Balance, 2020). Open banking is the drive behind both innovation and competition in the financial industry (Cahill, n.d.).
PSD2 is a European Directive that regulates electronic payment services and was implemented in all EEA countries in 2016 and went live in September 2019.
French banks are investing in the fintech ecosystem as well as innovating and leading it making them natural leaders in the digital financial movement in France (Valla, 2020). Therefore, France unsurprisingly has a thriving Fintech ecosystem that covers all things fintech (PlanetCompliance, n.d.). France Fintech was created in 2015 and already unifies more than 350 startups including Leetchi, Kantox and LemonWay (BusinessFrance, n.d.).
Currently, France does not plan to establish a regulatory sandbox but rather approaches enforcing rules based on the size of and the level of risk associated with the fintech startup (De Vauplane & Chairpiat, 2020). However, recent publications suggest that a “digital lab” be created in order to waive certain requirements and allow the development and innovation of security tokens (De Vauplane & Chairpiat, 2020).
Of all French citizens using the internet, 73% use the internet for online banking, which is 7% above the EU average (DESI, 2020, 10). Additionally, 3.4 billion contactless payments were made in 2019 (Valla, 2020).Furthermore, on integration of digital technologies, France ranks 11th among EU countries (DESI, 2020, 11). Finally, France ranks 12th in the EU for digital public services (DESI, 2020, 13).
The banking sector is one of France’s six main economic assets (Valla, 2020). France has a total of 340 banks, the largest of which include BNP Paribas and Crédit Agricole (Valla, 2020).
The Balance. (2020, October 11). What Open Banking Is and How It Will Affect You. https://www.thebalance.com/what-is-open-banking-and-how-will-it-affect-you-4173727
BusinessFrance. (n.d.).Fintech in France. BusinessFrance. https://events-export.businessfrance.fr/fintech-tour-north-america/about-fintech-in-france
Cahill, H. (n.d.).InvoiceFair. The Evolution of Open Banking: Connectivity breeds digital competition. https://invoicefair.com/the-evolution-of-open-banking-connectivity-breeds-digital-competition-081118/
DESI. (2020). France.Digital Economy and Society Index (DESI) 2020, 1-14.
De Vauplane, H., & Chairpiat, V. (2020).Fintech 2020 | France. Global Legal Insights. https://www.globallegalinsights.com/practice-areas/fintech-laws-and-regulations/france
Estevez, E. (2020, August 27).Open Banking. Investopedia. https://www.investopedia.com/terms/o/open-banking.asp
PlanetCompliance. (n.d.).A look into France’s FinTech Ambitions and its Regulatory Framework. PlanetCompliance. https://www.planetcompliance.com/a-look-into-frances-fintech-ambitions-and-its-regulatory-framework/
Valla, H. (2020, December).France’s banking sector: Facts & FiguresFrance’s banking sector: Facts & Figures. EBF. https://www.ebf.eu/france/
Tink was founded in 2012, and has built one of Europe’s biggest screen-scraping / open banking platforms – they claim to have broad connectivity and services that create value out of the financial data. Tink offers their platform to banks, fintechs, and startups.
Nordigen is an authorised Account Information Service Provider. We provide free access to bank data and premium data insights, using regulated PSD2 connections.
Yapily, one of a number of fintech startups that offer an opening banking API to let enterprises, such as financial service providers and merchants, connect to banks. Founded in mid 2017 by Stefano Vaccino, Yapily’s open banking platform makes it easier for various service providers to connect to banks. Specifically, it provides a way to retrieve financial data and initiate payments via a “single secure API” that in turn connects to each supported bank’s open API.
Plaid is a financial services company based in San Francisco, California. The company builds a data transfer network that powers fintech and digital finance products. Plaid's product, a technology platform, enables applications to connect with users’ bank accounts.
TrueLayer is a London-based start-up that helps fintech companies verify accounts and connect their apps to bank data. TrueLayer was founded by Francesco Simoneschi and the company has offices in 5 cities across the world.