Post-PSD2 and the introduction of the requirement to open up access to registered TPPs, banks need to increase security while also striking a balance between strong customer authentication and a frictionless user experience.Both fraud prevention and innovative authentication can be market differentiators for banks – so they need to choose wisely how they balance these. Biometrics could provide the answer.
Post PSD2 banks are no longer just competing against one another, but also against FinTech startups. But do they need to? The banks that survive the disruption might be those who collaborate with new entrants most effectively (we wrote about this here).
The new regulations PSD2 and GDPR are at odds to some extent – while one aims to open data access, the other focuses on protecting privacy.
The common ground with both is customer consent – but both GDPR and the regulatory technical standards under PSD2 lack clarity on the form of the required consent. Further guidance is urgently needed from both EU and national regulators on how banks can reconcile the requirements under PSD2 and GDPR.
Adapting to PSD2? Talk to us about how we can help.