James McMorrow, head of payment strategy, Lloyds Bank, believes it is time for financial institutions to choose their strategic path to PSD2 compliance – and to embrace the benefits of open banking. Designed to drive increased competition, innovation and transparency across the European payments market, the revised directive on Payments Services (PSD2) has potential to reshape the financial services industry as we know it. One of the most disruptive elements of the new directive, which banks must implement in January 2018, is the Access to Account rule (XS2A) whereby third-party providers (TPPs) who are regulated and authorised by customers will be able to receive account data from banks. This will enable them to provide the customer with an aggregated view of their balances and transaction information, for example.
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