PSD2 & Open Banking – Impact & Influence for Asia
At a high level, the PSD2 regulation was put in place for the following noble objectives by the European Commission:
- Foster innovation in the payments and remittance spaces by allowing third party providers (TPPs) access to online payment accounts of banking customers
- Regulate those fintech companies in the market who were already providing alternate e-payment mechanisms by bringing them under the scope of PSD2
- Increase end-consumer protection by introducing a number of specific and strict changes to refund policies, card-stop functionality, reducing execution times on payments
- Making two-factor authentication and dynamic payment linking mandatory across the Union for enhanced security on online payments
In reality, what has transpired is a seemingly endless tug-of-war between Fintechs and banks that only underscores the differences between these two “sides” in the overall PSD2 storyline.
For the rest of the world, this journey of Open Banking nudged by the PSD2 regulation may seem like a fascinating experience with a world of possibilities and collaborative win-win-win opportunities for banks, Fintechs, and ultimately customers!
But the reality is that the industry has been left with a lot of anomalies to deal with for themselves.
In the region, Australia, Singapore, and Hong Kong regulators have started consultations and are in the midst of this journey towards more openness and efficiency in banking systems. What can the Asia region learn from the European experience in open banking and PSD2?
Lauren Jones, previously Head of Standards at Payments UK, leads the discussion with key experts. Don’t miss this – join this discussion and debate at GPS2018!