Open Banking APIs Explained: What PSD2 Compliance Actually Requires From Your Engineering Team

Short summary

A technical walkthrough of PSD2 compliance for engineering teams explains that open banking is a compliance program with an API attached, not a single integration task. The article breaks down three API categories (AISP, PISP, CBPII), details the underestimated Strong Customer Authentication requirement, and covers redirect-based authentication flows where users authenticate directly with their bank. It aims to help fintech teams scope their first sprint realistically before timelines blow up.

• •PSD2 compliance is a regulatory program, not a single API integration
• •Three API categories: AISP (read-only), PISP (payment initiation), CBPII (funds confirmation)
• •Strong Customer Authentication is the most underestimated piece — redirect-based 2FA flows where the app never sees banking credentials

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