FCA authorisation and how Moneyhub can help

If you want to deliver Open-Banking-enabled services to your users, you’ll need to be authorised by the Financial Conduct Authority (FCA) as an  Account Information Services Provider (AISP) or become an agent of an existing AISP.

Applying for FCA authorisation is an extensive and time-consuming process that may not be necessary for your business. Becoming an AIS Agent may be an easier and quicker alternative, depending on your business’s regulatory requirements and how you plan to use Open Banking services. This approach allows you to provide Account Information Services (AIS) to your users through an AISP, such as Moneyhub while meeting legal and regulatory requirements.

So, what’s the difference between an AISP and an AIS Agent, and how do they work? Here are just a few things you need to know about them and the application processes.

What is an AISP?

AISPs are authorised by the FCA to offer Account Information Services (AIS) by gathering read-only financial information from multiple bank accounts.

For example, if a person holds accounts at three different banks. They can authorise the sharing of information from these accounts to an AISP. The provider can then access specific details from their account, such as balances and transactions.

This sharing of data can streamline financial processes, both for consumers and businesses. It can enable consumers to view all their accounts in one place and access simplified tools to manage their finances. At the same time, businesses gain a clear financial overview from multiple sources to create better, more personalised user experiences.

What’s the difference between becoming an AISP vs an AIS Agent?

To become an AISP, you’ll need to be authorised by the FCA. However, under PSD2, AISPs may provide their services through agents. Agents aren’t regulated by the FCA in their own right but can provide AIS to end users on behalf of the AISP. 

Acquiring FCA authorisation involves a lengthy application process, potentially taking 6-12 months, depending on how readily available you have the required documentation for the application process. It also requires demonstrating PSD2 compliance, including appropriate data privacy and IT security. Whether you need this authorisation is really down to your business’s regulatory requirements and how you plan to use Open Banking services - now and in the future. 

If you don’t require FCA authorisation, you can become an AIS Agent of Moneyhub instead. This option offers companies a quicker, more cost-effective route to market. After completing our simple application process and being accepted (which takes around two weeks on our side), we’ll apply to register you as an agent with the FCA on your behalf. 

If you’re unsure which route to take, the FCA has detailed guidance on whether authorisation or registration (via an AIS Agent)  is required depending on your business type.

How long will the AIS Agent application process take, and what information do you require? 

This typically takes about two weeks to process on our side. However, the overall timeframe depends on how quickly you supply the necessary information and how swiftly the FCA completes its approval - this normally takes up to 3 months, but it can be sooner. You’ll need to provide details via our Partner Compliance form, covering essential Know-Your-Customer (KYC) information about your business, your overall proposition, key activities, and specifics like data protection measures, compliance, and security arrangements. The collected information will verify that you've established proper processes to provide AIS that comply with FCA regulations.

Can you be an AIS Agent of more than one AISP? 

Yes, you can be an AIS Agent for more than one AISP at a time. You may require this if you’re switching AISPs to ensure your services remain in place during the changeover or if you’d like to bring in additional connections, data or enrichment to enhance your current AIS offering.  

Can you switch AISPs?

You can use the AIS switch feature to transition from your existing AIS service to Moneyhub. The norm for running two AISPs simultaneously during transition is about 90 days. During this period, customers are prompted to authorise Moneyhub in place of their previous AISP. To ensure uninterrupted services, we’ll send the data for customers still using the original AISP to Moneyhub via the 1st party data ingestion.

Looking to apply as an AIS Agent or switch providers?

If you’d like to learn more about becoming an AIS agent of Moneyhub or switch providers, contact our sales team.