PSD2 Deadlines Loom, but Potential Users are Unaware of Benefits

by Sarah Grotta 0

Financial Technology concept on the gearwheels, 3D rendering

Deadlines for the implementation of Payment Services Directive 2 (PSD2) in the European Union are fast approaching. A Euromoney article suggests that a lot of questions remain, not just from those who are tasked with implementing the still fuzzy requirements, but also the consumers and businesses that are the intended beneficiaries of the new open banking environment:

Due to be implemented on January 13, 2018, PSD2 will allow third-party providers to access consumer bank accounts and make direct payments, provided they have received the customer’s consent.

Although the new services are only months away, there is unease about how little education is being provided to consumers about what the changes will mean for them.

 What appears to be missing is messaging to explain to potential users why the EU is undergoing this monumental and expensive change to their financial services industry:

To date, no one party seems willing to come forward and take on the role of educator. Commenting on the potential for the banks to step up here, the PSD2 professional told Euromoney banks may be dragging their feet as they do not want the third parties to have access. Should a consumer choose to use a third party for a payment, the bank will lose the overview on the details of the transaction, reducing the quality of its data, and also lose out on any possible fees applied to the payment. Dick Oskam, global head of sales, transaction services, at ING, says it will only be damaging for them if banks bury their heads in the sand: “Education about what the changes of PSD2 mean is important, in particular for the consumer. Consumers needs to understand the benefits of it if they are to allow their data to be shared. Banks can and should play a role in this.”

Overview by Sarah Grotta, Director, Debit Advisory Service at Mercator Advisory Group

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