An article in Information Age suggests that banks in the EU are not embracing the concepts of open banking platforms despite the mandate within PSD2 that requires all EU financial institutions, within 6 months’ time to open up their customer data to any approved Payment Initiation Service Providers (PISPs) and Account Information Service Providers (AISPs) that wants it. Some believe that banks are ignoring the advantages of open banking platforms at their own peril:
The founder and CEO of Auka, the first mobile payments SaaS provider to operate entirely from google cloud, Daniel Döderlein, says that most European banks are not prepared for PSD2.
“Just look at the advances tech companies are making in this space, compared to activity in the market by banks in advance of PSD2”.
The concern expressed is that the regulation, coupled with inaction on the part of financial institutions, will leave their customers open to opportunities offered by technology companies that are jumping in with attractive products and services:
“The new regulations will make it simple for the likes of Apple, Facebook and Google to transition into the role of a better banking solution for those already using their products.”
“The enormity of the directive hasn’t been lost on them but it seems many banks are struggling to grasp this. When it comes down to it, it’s actually very simple. The banking industry, for better or worse, is in the midst of the biggest disruption it’s ever seen. Much like the taxi, movie rental and personal business software industry, that will only become clear to some in hindsight.”
Overview by Sarah Grotta, Director, Debit Advisory Service at Mercator Advisory Group
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