PSD2 deadline catalyst for bank action
In the month since the deadline of the second Payment Services Directive (PSD2), there has been little obvious change in how banks are allowing companies and consumers access to their customer accounts. This does not mean all banks have been standing still.
PSD2 became part of national law as the first phase of implementation was completed on January 13, 2018, when banks were obliged to allow access to their customer data.
In the coming 18 months – the next two phases are expected to be implemented by the third quarter of 2019 – banks will be looking at how they can get their services up to standard, and how they can compete with the arrival of third-party providers (TPP).
Although the first deadline has passed, the level of compliance seen was not universal.
|Amit Dua, SunTec
Amit Dua, president and global head of the client facing group at banking software provider SunTec, says: “The level of access and compliance with the deadlines does vary. Some banks have only allowed for third parties to access data through screen scraping.
“Not only has this been an option for some time, it is also not an entirely secure method of gaining access to accounts. In addition, it’s likely to cause confusion about open banking.”