PSD2: Changing the Access to Finances
Open banking aims to empower banks’ customers, putting them in charge of their account data, and granting them the privilege to share it with payment services providers of their choice.
The idea is to improve the customers’ experience, accelerate innovation in our industry and support its further development.
PSD2 isn’t simply a compliance project – it can be used to your own benefit. It is time to set your own PSD2 strategy and pursue ‘bank-as-a-platform’ system, where third parties will build applications and services around your institution.
and Changing the Banking Industry
The PSD2 regulation causes banks to open their infrastructure to third parties, which is considered to be the single biggest change in the banking industry. Banks need to allow a secure way for customers to authorize their preferred third-party providers in having access to these aspects of their bank account:
• customer’s account and transactional data,
• the ability to authorize payments directly from customer’s account.
To tackle this challenge, banks need to adapt to an evolving ecosystem, and overcome obstacles of security and integration:
• Addressing data privacy and confidentiality risks when sharing account information,
• Verifying if current IT landscape provides solid foundation for accessing customers’ data,
• In order to provide great digital services to customers and stay ahead of its competitors,
banks need to act quickly and with an agile mindset. The environment is everchanging
and everybody has to adopt fast.
Open API Approach: the Right Answer to PSD2
Open APIs are transforming fractured, siloed landscape and enabling banks to create connected experiences on existing applications.
APIs will give access not only to the bank’s own internal system, but also provide access to new innovative products external to the bank, such as P2P lending or digital wallets.
PSD2 is opening doors for players who will offer a full view of customer’s finances. Providing view over all accounts in a single dashboard, being accessible 24/7 and showing real-time data, it offers a strong position to win customers and promote their brand, no matter which bank or fintech player is actually holding the accounts or funds. And that player could be anybody.