+1-518-621-2074 | US-Canada Toll Free Contact Us

PSD2 to Push Boundaries of Open Banking and Pave Way for Advanced Digital Offerings by Retail Banking Industry

about us

Published on : Jun 15, 2016

ALBANY, New York, June 15, 2016: A recent research report added to the collection of ResearchMoz.us offers a comprehensive study on the impact of PSD2 on retail banking. The report, titled “Preparing for PSD2 and Open Banking,” identifies the opportunities and threats posed by open banking and PSD2, and envisages how banks can offer value-added services and products in an open banking environment. Insights about consumer preferences on account aggregation have been included in the report. Furthermore, the report lists down the key tactical steps to ensure compliance with PSD2 regulation and discusses how banks can shape their propositions leveraging third-party providers. 

The European Union’s Payment Services Directive 2 (PSD2) is anticipated to accelerate the fragmentation of the European retail banking industry in the aftermath of the global financial crisis. The opportunities offered by PSD2 will lead to strong brand awareness among banks. Advanced digital offerings by banks will push the boundaries of open banking in the near future. Increased competition from non-bank third-party providers and card issuers will prompt the mid-cap players to evaluate their strategies. Furthermore, the capping of interchange fees will force card issuers to aggressively enter into the personal loans market. In the coming years, there are very high chances of banks collaborating with third parties. However, this will relinquish their control over customers. 

Click here to get more info with TOC in a PDF Format: https://www.researchmoz.us/enquiry.php?type=S&repid=725229

The report projects that the banks with an established presence in fintech through accelerators and incubators will be in a stronger position to capitalize on the opportunities brought out by PSD2. Banks need to ultimately consider PSD2 as a business model change instead of a compliance issue. PSD2 rebalances the control over consumer data in favor of the consumer. Consumers usually show a strong preference for account aggregation services offered by their banks. In the near future, a number of banks will be in a position to offer additional apps over and above the requirements of PSD2. However, PSD2 has the potential to undermine customer loyalty by distancing banks from customers. 

The report discusses about strategic approaches to PSD2 compliance and open banking. Fintech networks are a key strength for banks. APIs are not only technical solutions but are business products too. To introduce open banking, banks need to chalk out a plan of action and set up a framework. Creating an API strategy, designing an API production process, testing, and delivering service support and monitoring are some of the key phases in the development of open banking. The future of open banking looks positive as it provides an opportunity for banks to collaborate and partner. Open banking can be referred to as the value-added banking of the future. The report further analyzes how banks can integrate value-added products and services into their offerings by adopting fintech solutions.    

To order report Call USA – Canada Toll Free: 866-997-4948 or send an email on [email protected]