Just a few years ago, only a few people in the financial industry had access to an individual’s banking data. Data was ‘owned’ by a few major players such as large financial institutions, and all access had to go through these information gatekeepers. Limited sharing of data has resulted in a stagnated offering of banking products to customers that have not significantly changed in decades: people are paying too much for their overdrafts or money sits in current accounts earning little, or sometimes even no interest. To summarise, customers are not happy.
PSD2 is reshaping the entire financial ecosystem all the way from traditional financial players to third-party providers (TPPs). The regulations will make it easier for technology companies, FinTechs and challenger banks to increase market share in a space that has been long dominated by banks. The resulting improved competition in the financial market, ultimately means more innovative solutions for both B2B and B2C customers.