By January 2018 all European Union (EU) member states will have implemented the revised Payment Services Directive (PSD2). This directive has a primary goal of establishing a uniform, transparent and open EU payment market that promotes innovation and competition, whilst adhering to strict cyber security requirements.
For the most part, the banking and financial services sector globally has a solid reputation for delivering secure information systems, and gradually over the last decade the banking sector has started to develop a wide range of end-user banking and finance applications on both traditional and mobile platforms.
At the same time, Fintech has become a big thing, an emerging powerhouse of innovation and agility in the financial services sector. However, in truth, this emergent Fintech industry and advanced applications are being stifled by not always having ready access to financial services data.
PSD2 has been built to correct this imbalance and support the build of a European payments ecosystem that enables new innovative thinking, investment and building a more competitive environment, which ultimately bodes well for the customer.