The adoption of the revised Payment Services Directive (PSD2) is formalising the relationship between Banks and FinTechs by establishing Open Banking, providing open access to customer account data and the payments infrastructure. This is expected to stimulate the FinTech market to develop new integrated service models for both consumer and business customers.
This regulation is a reaction to the growing demand from customers as mobile and internet applications have become widely adopted driving expectations in how services should be delivered across all industries.
Other market segments have adopted Open APIs to respond to this demand and have shown that innovative applications can grow business and change customer behaviour.
So far, the general response of Europe’s bankers to PSD2 is one of uncertainty. Many bankers fear that PSD2 will cause them to lose control of the client interface and so remain unsure how to respond to the PSD2. As a result, they follow a defensive, wait-and-see stance that is risk averse.
The objective of this webinar and supporting report is to analyze the implications of the revised Payment Services Directive, PSD2, for the European banking industry and Open Banking challenges both for banks and FinTechs. In short Open Banking leads to more transparency, customer choice and control over financial assets and personal data. Open APIs are a key enabler of this evolution.
Presenters: Horst Foerster – Lead author and head of Research Payments Cards and Mobile
Andy Brown – Marketing Director Payments NCR