For general public
Welcome to the world of open banking
You can easily connect your accounts to third party applications, making their control and administration easier. The third party could be an internet banking provider, a digital financial advisor or even an e-shop. Every third party has to have a valid license, insurance and certification.
Who is a third party?
A third party is a subject with the license to provide the service of indirect payment orders or account information. In the Czech Republic, the Czech National Bank issues the license to provide such services. For the service of confirming disposable balances to payment card issuers, the law doesn’t explicitly require a license (seeing as it is not a payment service).
In the provision of these services, the bank may either appear in the actual position of a bank that holds your account, or as a third party that conveys the payment initiation in another bank or provides the account information service.
How does it work in practice?
You can appreciate our open banking services if:
- you have multiple accounts and you don’t like using multiple internet banking interfaces – now you can connect all of your accounts into one internet banking and control everything from there
- you have multiple accounts and you don’t like manually compiling your income and expenses – now you can connect all of your accounts into an financial advisor app and the app will calculate it for you
- you are shopping in the same e-shops and you don’t like rewriting your card details – now you can allow the e-shop to connect directly to your account and make your shopping experience more pleasant
- you would like to borrow money from a credit provider, but you don’t like the complicated process of stating your income and expenses – now you can allow your credit provider to connect directly to your account and check everything for you
Open banking was allowed by a directive of the European Parliament and Commission 2015/2366 of 25 November 2015 on payment services in the internal market. The new law on payments, Act No 370/2017 Coll. transposes this directive into the Czech legislature (effective 1 January 2018).
What do these services allow?
- Indirect payment initiation – a service that enables the client to initiate a payment order from their account in the application of a third party (e.g. when purchasing goods from an e-shop). This service is thus far restricted to domestic, international and SEPA payments.
- Account information – this service allows the customer to display a list of their accounts, balances and the transaction history within a third party application.
- Disposable balance confirmation – allows a third party (the issuer of a payment card) to validate in the bank that an account has a sufficient balance for a particular transaction (the bank only answers Yes or No to the request).
Frequently asked questions
Can I initiate a payment order or to display the balance of my account in another bank in my internet banking?
Yes, thanks to PSD2 you can either initiate a payment or display the balance of an account opened in another bank. Security is paramount for us in this regard, so we always meet the strictest technical standards.
Is somebody else able to look at my account? Who? And what does that look like?
Only you (the account owner) are still able to look at your account, as well as any person you authorize to access your account through a power of attorney. No third party or other person has access to the information about your account without your knowledge and consent.
If you wish to use the service of third parties for account information purposes, you will be able to view your account information in their applications. If you do not wish a third party to have access to your account, you can simply disable the functionality in your internet banking or at a physical branch.
Will somebody be able to initiate transactions from my account? How can I allow this or prohibit someone from doing so?
Transactions from your account can only be made by you (the account owner), or an authorized person you grant such rights to. If you do not wish for this service to be available for your account, you will be able to disable it in the bank (in your internet banking or at a physical branch).
It is not necessary to enable the indirect payment initiation service (made through a third party) in the bank in advance; however, you will have to authorize each transaction (which can be done by anyone who has the rights to do so in your account).
What does the payment authorization look like when I’m initiating a payment from my ČSOB account via a third party?
Every payment order indirectly initiated through a third party has to be confirmed on a corresponding ČSOB webpage (just as the client is used to from their internet banking). Therefore, before the payment is be executed, you are redirected to a bank site that displays all the information of the initiated transaction and where you confirm it similarly to other similar transactions. Any other necessary steps (both prior to and after the confirmation) are conducted in the third party application and the bank has no influence over them. It is not possible to revoke a payment order initiated indirectly in the aforementioned way.
Can I completely disable these services in my accounts? (I don’t want them, I’m scared of them)
These services cannot be completely disabled. However, it is possible to disconnect an account held with another bank
Is there an overview to whom (which company or bank) I’ve given permission to view account details or initiate payments?
Yes, the overview will be available in your internet banking or upon request at a physical branch.