Ask The Experts: The Future of Banking & FinTech in Light of PSD2, Part 4
PSD2 regulation is changing the world of banking as we know it. The directive is being implemented into national law of member states since January 2018, and banks need to make sure to comply with the regulations. As banks that operate in the EU are required to provide third-party providers access the banks’ customer accounts through open APIs, the new space for collaboration with FinTech firms is torn wide open. Banks will no longer hold the monopoly on their customers’ data, and the implications are indeed far reaching.
With PSD2, banks and other financial institutions will have to open up their systems and, at the same time, nurture trust with their customers. While PSD2 comes with a certain degree of risks, banks have the opportunity to strengthen its relationship with its customers by improving the customer experience and security.
Hopefully, banks and FinTech companies will embrace this new regulation and view it as an opportunity to build a modern, customer centric, and secure ecosystem. PSD2 holds a special place in our hearts, as the directive incorporates the use of behavioral biometrics as an authentication tool. So we decided to take a deeper look into what the experts, whose industries are affected by this directive. Here is what we found out during our #AskTheExperts three-part interview series where we interviewed experts from different regions and backgrounds to get a well rounded view:
Key Takeaways
- PSD2 is a huge opportunity
- Authentication matters
- Importance of user experience
Gain more detailed insights into these ideas and what we foresee are the effects on our blog.