FinologeeIBANTrust is designed for financial institutions and payment service providers subject to the new European regulation for instant credit transfers in euro and the upcoming PSD3/PSR package*, enabling them to implement IBAN name verification requirements in a compliant manner. The platform acts as a seamless solution, integrating with SWIFT’s Payment Pre-validation solution, ensuring adherence to the regulation. Its key feature is rigorous IBAN accuracy checking, ensuring secure and fast transactions.
Whatis it?
Through its state-of-the-art API connector, FinologeeIBANTrust ensures that payers have the means to confirm the legitimacy of the payee’s payment details before proceeding with an instant credit transfer. By providing greater transparency and control over transactions, the IBAN-name check feature will contribute to a safer and trustworthy instant payment ecosystem for all stakeholders.
*Current Status
Regulation: All legislative proposals concerned are currently under discussion between the Commission, the Parliament and the Council. Scroll down for more information on the status of the legislation.
Product evolution: IBANTrust is a new framework and platform that Finologee is currently implementing. Availability is dependent on the final texts of the new legislation as well as the Level 2 regulation/specifications. Please check with our team for updates on the availability roadmap.
What arethe features?
IBANTrust:How does it work?
What arethe components?
What future obligationsfor PSPs?
Valueproposition
Integration of SWIFT solution guaranteeing a worldwide data coverage
(and any European scheme – pending regulatory definition)
Flexible integration with PSPs
(existing PSD2 API, proprietary API, custom integration)
Customisable rules engine
(definition if specific validation rules allowing a tailored verification process)
Full regulation compliance
(Instant Payments and upcoming PSD3/FIDA package)
High-end & compliant hosting and operations
(Luxembourg Support PFS hosted – ISO27001 certified)
Total neutrality
(No affiliation with any particular bank/group)
Use case: IBANTrustLYNKS integration
The LYNKS interface allows to seamlessly visualise the diverse outcomes stemming from IBAN-name check requirements. When the payee’s name and IBAN provided by the payer perfectly align, a clear and reassuring confirmation message is displayed, ensuring a seamless transaction experience. In cases where the payee’s name and IBAN provided by the payer almost match, a cautionary alert appears, prompting users to double-check their entries for accuracy. If the payee’s name and IBAN provided by the payer do not match, a distinct warning signal notifies users, emphasizing the discrepancy and prompting further verification steps.
Additionally, LYNKS has incorporated user-friendly notifications for situations where the payee’s name and IBAN check information are unavailable, ensuring transparency about the limitations of the verification process. Through this thoughtful visualization, LYNKS empowers users with immediate, actionable insights, fostering a secure and trustworthy payment environment.
How does it look on screen?
Please note that the interfaces below serve as an example to show how IBANTrust could be integrated in our platform LYNKS. Yet, all customers can integrate it into their websites and interfaces as they need. We provide flexibility for customisation according to respective preferences.
Payee’s name and IBAN provided by the payer match
Payee’s name and IBAN provided by the payer almost match
Payee’s name and IBAN provided by the payer do not match
Payee’s name and IBAN check not available
Legislative status:by when is it applicable?
The launch of IBANTrust depends on two key legislative processes: the new European regulation for instant transfers in euro and the upcoming PSD3/PSR package. All legislative proposals concerned are currently under discussion between the Commission, the Parliament and the Council.
Instant payments: Current status of legislative proposals
After the publication on 26 October 2022 of the legislative proposal on Instant Payments by the European Commission, the European Parliament’s responsible committee has approved the proposal on 28 June 2023. In parallel, the EU Council reached its negotiating mandate in May 2023.
Discussions between the Commission, the Parliament and the Council are ongoing. A provisional agreement has been reached on a majority of issues. The institutions parties agreed that topics relating to the payee verification, such as IBAN-name check for multiple payment orders and electronic orders, provisions on the ‘degree of matching’ and alternatives to the use of payee name for the verification will be further discussed and prepared at technical level for the agreement at the next political trilogues.
Once the regulation entered into force, banks in the Euro area will have 12 months to comply with IBAN-name check requirements.
Instant payments: Remaining open points
No pan-European standard/scheme defined yet
Risk of market fragmentation if no consensus/European aligment
Implementation schedule
PSD3/PSR: Current status of the legislative proposals
On 28 June 2023, the European Commission published its long-awaited payment services and financial data access package, aiming to ensure the EU’s financial sector is fit for purpose and capable of adapting to the ongoing digital transformation. The proposal involves amending and modernising the current Payment Services Directive (PSD2), which will become PSD3, and establishing, in addition, a Payment Services Regulation (PSR).
Both the PSD3 and the PSR will enter the ordinary legislative procedure, where the European Parliament and Council will have to adopt their respective positions before entering in trilogue negotiations to finalise the texts. The transposition deadline for Member States and the start of the application period is 18 months after entry into force.
Finally, the proposal contains a review clause that provides for an assessment of the scope of PSD3 and the possible extension to payment systems and technical services five years after the transposition of the directive.
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