DEFINITION
Account Information Service Provider (AISP)
An Account Information Service Provider (AISP) is a regulated financial entity that accesses and consolidates account information from multiple banks and financial institutions, providing users with an aggregated view of their financial data in a secure way. These providers are licensed under the Revised Payment Services Directive (PSD2) and/or the regional equivalent body to ensure that the accessed data cannot be mishandled in any way.
AISPs make up the foundation of open banking as they allow third party providers to access relevant customer data in order to perform tailored financial services. This can be especially important for the loaning process, as it allows financial institutions to more efficiently gauge a given customer’s risk profile by observing their financial health directly.
Synonyms
Open banking service provider
Acronyms
AISP
Share
Synonyms
Open banking service provider
Acronyms
AISP
Examples
A person wants to use a new finance app that will help them cut down on their expenses. The app utilises an open banking approach and therefore asks the user for permission to get access to their data. The person agrees. At this point, the app fetches relevant data from an AISP that is connected to your bank account, credit cards, and investment accounts. This is done in a secure manner through APIs mandated by the PSD2.
Now that the app has data on the person’s spending habits and financial health, it provides a tailored plan as well as tips and tricks for how they can cut their expenses by 10%.
FAQ
What does an AISP do?
An AISP aggregates data regarding a person’s finances across different accounts and platforms in order to have a unified view and insight into their financial health. This data is typically then used by third-party financial services to provide a better, more tailored user experience.
How does an AISP access my account information?
Banks can use specialised APIs that follow PSD2 regulations to share customer data with third parties. This is only possible if the user gives special permission for this data to be shared.
Are AISPs safe?
Yes. Like all financial services, AISPs must comply with very strict regulations that guarantee the safety of the user. Namely, AISPs must use encryption and be authorized by financial regulators.
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Book your demo today and see why leading financial institutions worldwide trust Atfinity to drive their digital transformation.