A new joint report from Efma and Microsoft looks at the challenges and opportunities presented by the Second Payment Services Directive (PSD2).
Described in the report as ‘one of the largest regulatory challenges that banks have faced in recent years’, PSD2’s impact is being felt across the industry. Banks must comply with the directive’s regulations by January 2018.
The regulations mean European banks must give third party providers access to a customer’s accounts. This is in order to initiate payment services, or provide account information in a regulated and secure fashion.The intended result is seamless payments across borders in Europe, as well as greater competition with customers having more choice. Innovation and higher customer protection are other anticipated benefits.
Efma and Microsoft’s joint report takes a look at the role digital transformation is having in this space, as banks and insurance companies make changes to account for the PSD2 regulations.
The survey gathered information from Efma members, and found that roughly half of respondents aren’t yet ready to incorporate the new directive into their regulations. However, 68% said clear implementation plans are in place to meet the new regulations.
With regards to the opportunities PSD2 presents, 95% of respondents said new products will be created and new commercial opportunities will be targeted once the regulations become law.
Where will the biggest impact be felt? 67% of those surveyed indicated that they believed this would be on the customer journey and revenues.
Other areas covered in the report include how PSD2 will impact application programming interface management, the directive’s link to monetisation possibilities, and the role fintechs will play.
The full report is available here.