Amid the ongoing debate about the revised directive on payment services (PSD2), one issue that has gone largely unreported is the fact that many banks in the UK would rather not have had to deal with PSD2 at all.
On the face of it, PSD2 represents a threat to banks’ ownership of their customer relationships. PSD2 compels banks to open up access to accounts and decouple retail banking from easy access to money through the existing mechanical linkage to payment services. Naysaying banks worry that these requirements will at best disconnect them from their retail customers; at worst, they fear being put at the disadvantage of becoming commodity sources of account processing and credit lines.”
Sourced through Scoop.it from: www.itproportal.com
Europe’s bankers have reported being unsure related to more open banking due to PSD2 adoption in 2018, according to a new study by Strategy&, PwC’s strategy consulting business. 68% of bankers fear that PSD2 will cause them to lose control of the client interface and many remain unsure how to respond to the new directive. (88%) of banks expect to see growing competition from third party digital services providers. 68% believe that PSD2 will (further) weaken the position of Europe’s banks.”
Sourced through Scoop.it from: www.thepaypers.com
The financial services industry has arguably the most ground to make up to modernise its digital offering. As such, IT directors will have already saved the date of the EU’s open banking directive, otherwise known as PSD2, which will introduce clear guidelines for financial institutions to use application programming interfaces (APIs) to advance payments.
The Payment Services Directive 2 (2015/2366) (PSD2) which amended the earlier Payment Services Directive and which is due to be implemented by member…
The UK’s vote to leave the EU raised certain concerns about the country’s continued regulatory alignment.