On January 13th, 2018, the new European Directive on Payment Services in the Internal Market (PSD2) comes into effect, marking the next stage of the European payments market’s transformation. Christian Schaefer, global head of payments, Cash Management, Deutsche Bank, explains the implementation hurdles and opportunities in an article for FTSE Global Markets magazine – and sets out why financial institutions should strive to be PSD2-ready, sooner rather than later.
Admittedly, while there are significant time and resource investments required to become PSD2-ready, the benefits for both PSUs and PSPs should become evident from day one, says Schaefer. Even so, becoming PSD2-ready should not be seen as merely as an exercise in regulatory compliance. It brings many advantages that can grant banks and fintechs new revenue streams and opportunities to enhance their client offerings.
Institutions making the TPP interface operational in time for the effective date can also be among the first to implement Open Application Programming Interface (API) capabilities – allowing them to offer new, innovative products tailored to the evolving needs of their existing (and prospective) clients.
Read the full article here.