Welcome to our roundup of the best news and opinion on PSD2 from the last week.
Banks who fail to embrace the opportunities of open banking could be left behind – while those who choose to capitalise and incorporate the innovation that startups like Monzo rely on will be in a stronger position than they are today.
Open banking: nothing personal – Banking Technology
Open banking is a ‘mindset shift’ away from proprietary control, and it will be much as much about changing culture as evolving technology.
71% of European banks believe PSD2 is an opportunity, not a threat – a greater proportion than banks in the either the USA or Asia. 52% of banking executives globally believe they will need to implement open banking practices in order to remain competitive.
PSD2 should be a wake-up call for the big banks – International Finance
Banks who aren’t doing much with their data have the most to gain or lose from PSD2 coming into force. ‘Data is gold’ – and there will be significant revenue opportunities from the new APIs that will be implemented.
Reconciling security with open banking means that banks will need to have strong risk management, implementing both SCA (Strong Customer Authentication) with the flexibility of APIs that connect to TPPs.
Big banks should stop worrying about if or when giants like Google and Facebook will enter financial services off the back of the changes PSD2 will ring, and begin looking at how those changes can be a catalyst to enhance their own core offerings.
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