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PSD 2

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Norwegian banks spearhead PSD2 collaboration

Even though the technical implementation of PSD2 has been delayed, there is no doubt that opening up the banking infrastructure will change the face of retail banking as we know it. While Norwegian banks are not required to open up until the second half of 2019, Sbanken and the SpareBank 1 banks are getting ahead of the curve and are making PSD2 happen long before it is required.

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Leveraging PSD2 for credit scoring and lending

With PSD2 around the corner, both banks and aspiring third parties are preparing for what seems to be a new dawn for financial services. However, the discussions so far have been revolving around on potential loss of transaction revenues and the battle for the customer relationship. However, at the end of the day, the majority of bank revenues are from loans, and how will PSD2 impact lending?

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What could Facebooks European payment license mean for banks?

Early December, Facebook finally unveiled their newly acquired licenses for e-money and payment services out of Ireland. The rumors of Facebook entering the payment space in Europe has been going on for a while, ever since it was reported that Facebook applied for a money transfer license a while ago. Facebook is already in a unique position to disintermediate retail banks as the most powerful digital ecosystem out there for consumers. The key to Facebooks powerful position is the ability to evolve alongside changing user behavior, and so far, Facebook is excelling at this. According to a study conducted by pwc, 68 percent of bankers are concerned with losing control over their customer interface. A regulatory compliant Facebook should definitely make those concerns turn into worries.

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Open banking: An introduction

The landscape for financial services is changing, and the jury is still out on how the endgame is going to play out. One of the concepts shaping this future is open banking. This development emerge out of the payment area where a perfect storm of shifting customer behavior, regulatory changes, the threat from digital ecosystems such as Google, Apple, Facebook and Amazon, and the quest for new business models are driving banks toward the open banking paradigm.

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PSD2 – opportunities, threats and strategic options for banks

As I have described in previous posts, PSD2 will force banks to open up their infrastructure to third parties by offering APIs under the XS2A (access to account) rule. The directive has the potential to fundamentally alter the payment landscape as we know it. One of the reasons why PSD2 will have such a large impact is that it will level the playing field and increase competition by integrating the role of new and emerging payment services into the regulation. While incumbents have the most to lose, there are also opportunities ahead for banks.

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What does PSD2 mean for online merchants?

The purpose of the upcoming payment service directive PSD 2 is to create an even playing field for payments and encourage innovation. The players on this field include banks, fintechs, the PCI (Payment Card Industry) and merchants. While banks are at risk of losing up to 43 percent of retail payment revenues by 2020, the directive represents several opportunities for online merchants.

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A short introduction to PSD2

The coming payment service directive from the European Commission marks a shift in banking regulations. Instead of prohibitions and limitations, the overall purpose of PSD 2 is to create an even playing field and encourage innovation in the payment space as a part of SEPA (Single Euro Payment Area). Although all the technical details is yet to be sorted out, the directive states that banks need to offer payment APIs to third party-providers of financial services, also known as TPPs (Third Party Provider) under the XS2A (Access to account) rule.

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