Small- & MicroCap Investment
by Eva-Maria Reuter
Corporate announcement for the capital market
Small- & MicroCap Investment: ISX Financial is a pioneer in open banking: focus on consumer protection and fraud prevention
Frankfurt (pta000/18.08.2024/08:30 UTC+2)
ISX Financial EU Plc, (“ISXPlc”; ISIN: CY0200861017), believes that the world of Open Banking is evolving rapidly thanks to technological innovations and better regulation. For example, new laws aim to strengthen consumer protection and effectively combat fraud, which ISXPlc believes is a necessary step forward to encourage widespread adoption.
In Europe, the planned Payment Services Directive 3 (PSD3) has introduced significant changes to the payment services and competition space, while in the UK the Financial Conduct Authority (FCA) is working on further directives. One of the goals of these two regulatory regimes is to drive data-driven innovations like those of ISXPlc.
PSD3, FIDA, PSR, JROC: These regulations shape Open Banking
However, this can only be achieved with clear rules that enable innovation and investment. The PSD3 Directive¹, introduced as the successor to PSD2, aims to further promote innovation in payments while increasing consumer protection. The new regulations, which are expected to apply from 2027, include stricter security measures and transparency requirements for payment service providers. A particular focus will be on authenticating users and ensuring the integrity of payment transactions.
The Financial Data Access (FIDA) Regulation ² is also central to the implementation of open finance in the EU. It requires financial institutions to exchange customer data with third parties upon request and sets out technical standards and governance rules for this purpose. FIDA extends data exchange beyond account data to loans, investments, insurance, etc. and is thus the central building block for open banking.
Finally, the Payment Services Regulation (PSR) regulates technical aspects such as authentication, interfaces and security standards for payment services.
In the UK, the JROC, a joint initiative of the Financial Conduct Authority (FCA) and other regulators, is working to ensure robust supervision and clear guidance in the area of open banking.
Consumer protection and anti-fraud measures
One of the biggest challenges in the payments space is preventing authorised push payment (APP) fraud. Fraudsters often use social engineering and other techniques to deceive consumers and trick them into sending payments to fake accounts. Both PSD3 and the FCA have therefore set out specific measures to reduce such fraud. These include the introduction of multi-factor authentication (MFA) to ensure that only authorised users have access to their payment accounts, and real-time notifications that inform consumers directly about suspicious activity so they can respond immediately.
ISXPlc believes that the current UK PSR provisions on APP fraud do not place sufficient responsibility on the consumer as payer. However, the company expects that these provisions will be reviewed in the future to achieve a more balanced position that is fair to both the consumer and the payee.
PaidBy®: ISXPlcs Open Banking Flagship
A prime example of an innovative open banking product is PaidBy® from ISXPlc. It provides an instant settlement platform with a fully automated reconciliation system that allows payments to be processed and verified in real time. PaidBy® is designed to streamline payments while minimising the risk of errors and fraud for businesses and customers. This includes the integration of advanced security protocols and a transparent reconciliation system.
In addition to ISXPlc, Plaid Inc. (ISIN: JP3833270006) is also a leading FinTech company that primarily specializes in providing solutions for the secure exchange of data between financial institutions and FinTechs.
Recent developments in open banking, supported by regulatory action and innovative technologies such as PaidBy®, show that the path to secure and consumer-friendly payments is paved. Continued cooperation between regulators and financial service providers will also ensure that consumers are protected and informed in an increasingly digital world.
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ISX Financial
https://www.isx.financial
Sources:
¹https://www.cash.at/handel/news/payment-betrugspraevention-banken-vor-neuen-herausforderungen-30496
³https://www.youtube.com/watch?v=EzNyc5QrZko
Disclaimer/Risk notice
Conflicts of interest: There is a paid IR and PR contract with ISX Financial. The content of the services is, among other things, to increase the company’s level of awareness. Dr. Reuter Investor Relations is therefore acting in the interest of ISX Financial in creating and distributing the article. This is an editorial promotional presentation.
Corporate risks: As with any company, there are risks associated with the implementation of the business model. There is no guarantee that the business model can be implemented as planned.
Investment risks: Investments should only be made with funds that are freely available and not needed to secure a living. There is no guarantee that it will be possible to sell shares on the stock exchange at any time. Shares are always subject to the risk of total loss.
Disclaimer: All information published in this newsletter / article is based on careful research. The information does not constitute an offer to sell the stock(s) discussed, nor a solicitation to buy or sell securities. The statements are based on sources that the publisher considers trustworthy.
Sources: In particular, information available on the company website is taken into account for the presentation and assessment of the companies. As a rule, there is also direct contact with the management board/IR team of the respective company being analyzed or presented. The article was submitted to ISX Financial before publication in order to have the accuracy of all information checked.
Forward-looking statements
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Responsible & contact for inquiries
Small- & MicroCap Investment via Dr. Reuter Investor Relations
Dr. Eva Reuter
Friedrich-Ebert-Anlage 35-37
60327 Frankfurt
+49 (0) 69 1532 5857
www.dr-reuter.eu
www.small-microcap.eu
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