Everything was set for September 14th.
Both traditional banks and fintech players were expecting the event. On that date all financial institutions would have been required to share their customers' data with authorized third parties. This was a direct consequence of the famous PSD2 directive adopted in January 2018. But things will actually take a little longer. Several European authorities granted additional time – 4 months in France – for the industry to get ready.
At the heart of the issue are the APIs.
What are they? Small connectors that allow you to plug into banks’ information systems. As for now, their accessibility is not yet complete. Between traditional banks and fintech firms, interoperability is not 100% achieved. By mid-August 25% of the banks’ APIs were still being tested, and almost none were entirely operational.
On our side anyway, we are ready.
Beyond the controversies over the responsibility for this delay, let us not forget PSD2’s main goal: the long-awaited rise of Open Banking. A revolution that gives the customer back control of his data: from now on, the law makes them the sole owners of their information. It is up to them to decide with which financial service providers they want to share it.
A revolution in product offering. Thanks to this facilitated data contribution, fintech will keep their internal data infrastructures running at full capacity. In addition to the best customer knowledge, the entire marketing apparatus and service offer will be transformed for the best.
A revolution in customer experience. The fluidity of the online journey will continue to increase dramatically. Tedious information requests, poor targeting, compliance... many obstacles will be overcome, allowing a greater customer satisfaction.
Thanks to the full implementation of the PSD2 directive, the last locks will fall. Meanwhile, fintech firms are already on the warpath. As of today, AISP and PISP certifications are the keys allowing to consult customer accounts and to initiate their payments. Dozens of services have already been redesigned such as international payments.
Open Banking is already a reality.
CEO et fondateur d’iBanFirst