Security is Friday Finance's top priority. Through our multi-banking functionality and the Friday Finance business account, we provide our customers with real-time insights into their finances, all in compliance with the highest security standards and in accordance with applicable laws and regulations.
Multibanking is PSD2 regulated
For companies, it is important to diversify their capital and invest in different banking institutions to increase deposit protection and reduce systemic risks. That's why multi-banking is becoming increasingly relevant to keep track of various accounts.
Friday Finance customers have the opportunity to view multiple accounts from different banks consolidated in one platform to get real-time insight into their cash balance. This is done in accordance with the current laws and regulations of the European Union and the United Kingdom. In this context, PSD2 (Payment Services Directive 2) is particularly important. PSD2 is an EU directive that applies to the entire European Union and the European Economic Area. The main objectives of PSD2 are the creation of an integrated European payment market, increasing the security of digital payments, and protecting consumers and their data. Friday Finance is fully PSD2 compliant and aims to increase the security of its customers and their data.
Friday Finance offers German IBANs controlled by BaFin
To be able to offer banking services in Europe, Friday Finance collaborates with Swan, a provider of payment technology. Swan is a regulated e-money institution and is regulated and monitored by the ACPR (French financial supervisory authority - similar to the German BaFin), meaning that high security standards as well as measures for risk and fraud detection must be regularly demonstrated. Friday Finance, therefore, offers German IBANs, which are assigned and monitored by the Federal Financial Supervisory Authority (BaFin).
BNP Paribas as a systemically relevant global partner bank
At Friday Finance, all deposits on our business accounts are held with our partner bank BNP Paribas, the second-largest universal bank in Europe. Customer funds are stored on segregated accounts with the highest level of security and are never used for credit purposes, meaning they are not lent out or invested in other financial products. This ensures that all deposits of our customers are safe and available at all times.
Deposit protection also applies to Friday Finance
Deposit protection guarantees the repayment claims of customers of a credit institution if the credit institution is unable to repay the deposits of the customers.
The European Deposit Guarantee Directive provides uniform regulations for deposit protection in all member states of the European Union. Every bank customer has a legal entitlement to compensation of up to €100,000 per depositor and per credit institution. The goal of deposit protection is to protect the money held by customers at banks in order to strengthen consumer confidence in the banking system and thus ensure the functioning of the banking sector. In particular, this is intended to prevent the risk of a bank run - the rush of many customers to a bank to withdraw their existing deposits as quickly as possible.
The deposits on our Friday Finance business accounts are also guaranteed by the European Deposit Guarantee Directive and are available at all times. Deposits of up to €100,000 per customer are secured.
How 2-factor authentication protects Friday Finance accounts
2-factor authentication (2FA) represents a significant improvement in the security of business accounts by providing an additional layer of protection against unauthorized access. Unlike traditional login credentials that only consist of a username and password, 2FA relies on two independent factors to verify the identity of the user. This method, also known as multi-factor authentication, requires that the previously chosen password and a numerical code sent to the registered phone number be provided during login. This provides additional protection for Friday Finance accounts and makes access by unauthorized persons almost impossible.