How much would you discuss with Erica, Nomi or Eno? And no, those aren’t #people, but virtual assistants provided by some of the largest #banks in North America. Artificial intelligence has become a hot topic, and even more so in relation to chatbots and virtual assistants. But just how comfortable is a customer speaking to […]
Bank Innovation
With the introduction of the revised payment services directive (PSD2) in January 2018 just around the corner, #banks face a new and potentially disruptive era. #Open APIs and PSD2 will, in time, disrupt traditional #banking. It’s no surprise, then, that the majority of global banks are planning to invest heavily in open banking initiatives by 2020, as revealed in a recent Accenture study.
But are consumers ready to embrace the era of open banking? Customers will, for example, be able to share access to their financial data with non-bank third parties, which could provide customers with new, innovative services using their customer data. However, consumers appear to have their doubts and concerns about financial services being provided by non-financial third parties. Another recent Accenture study shows that two-thirds of consumers in the UK said they won’t share their personal financial data with non-bank providers.
These results suggest that banks already have an extremely valuable competitive advantage they can use as they build their open banking initiatives: their customers’ #trust. But in order to capitalize on this in a rapidly changing market landscape, banks need to act now and create their strategy for winning in the era of open banking.
The banks need to move quickly because while they currently possess the advantage of customers’ trust, the study shows millennials are already significantly more open to using services from non-banks. Banks should use the time before PSD2 APIs become mandatory to strategically plan for open banking, create compelling digital launches, link into ecosystems and gather a developer community to be better positioned before non-banks make their moves.
In the Nordics, we see quite a mixed degree of preparedness between various banks to enter the new market. In contrast, for example, retail companies seem to be actively grasping the upcoming opportunities. Many Nordic banks face challenges from adapting their legacy systems and architecture to become Open API-enabled business models.
Reach out to us to learn more about how to address open banking in order not just to comply—but to compete.
The post Open Banking: Why trust matters appeared first on Accenture Banking Blog.
With the introduction of the revised payment services directive (PSD2) in January 2018 just around the corner, #banks face a new and potentially disruptive era. #Open APIs and PSD2 will, in time, disrupt traditional #banking. It’s no surprise, then, that the majority of global banks are planning to invest heavily in open banking initiatives by 2020, as revealed in a recent Accenture study.
But are consumers ready to embrace the era of open banking? Customers will, for example, be able to share access to their financial data with non-bank third parties, which could provide customers with new, innovative services using their customer data. However, consumers appear to have their doubts and concerns about financial services being provided by non-financial third parties. Another recent Accenture study shows that two-thirds of consumers in the UK said they won’t share their personal financial data with non-bank providers.
These results suggest that banks already have an extremely valuable competitive advantage they can use as they build their open banking initiatives: their customers’ #trust. But in order to capitalize on this in a rapidly changing market landscape, banks need to act now and create their strategy for winning in the era of open banking.
The banks need to move quickly because while they currently possess the advantage of customers’ trust, the study shows millennials are already significantly more open to using services from non-banks. Banks should use the time before PSD2 APIs become mandatory to strategically plan for open banking, create compelling digital launches, link into ecosystems and gather a developer community to be better positioned before non-banks make their moves.
In the Nordics, we see quite a mixed degree of preparedness between various banks to enter the new market. In contrast, for example, retail companies seem to be actively grasping the upcoming opportunities. Many Nordic banks face challenges from adapting their legacy systems and architecture to become Open API-enabled business models.
Reach out to us to learn more about how to address open banking in order not just to comply—but to compete.
The post Open Banking: Why trust matters appeared first on Accenture Banking Blog.
Recent regulatory changes in Europe, including the #Payment #Services #Directive (#PSD2), are set to accelerate payments innovation.
The Payment Services Directive (PSD) was initially adopted by the European Union (EU) in 2007 and aimed at providing a legal framework for all payments made in the region with the purpose of making these faster, more efficient and easier to use for European consumers and payments services providers.
In October 2015, the EU adopted a revised PSD – also referred to as PSD2 &8211; that sought to enhance consumer protection, promote innovation and improve the security of payments services.
PSD2 is a major policy development expected to impact the payments industry across Europe through: further standardization and interoperability of cards, Internet and mobile payments methods; the reduction of barriers to entry in particular for card and Internet payments providers, driving thus increased competition, innovation and transparency across the European payments market; as well as providing the necessary legal platform for the Single Euro Payments Area (SEPA).
The directive seeks to improve the existing EU rules for electronic payments, while taking into account emerging innovative payment services, such as Internet and mobile payments. It sets out rules concerning:
The regulation came into effect on January 12, 2016, and EU countries must incorporate it into national law by January 13, 2018.
The new directive brings key changes that include:
Third-party payment initiation: Payment Initiation Service Providers (PISP) will be able to initiate online payments from the payer&8217;s bank account. This will encourage competition in the European payments industry. Accenture estimates PISP services could account for up to 16% of online retail payments by 2020.
The definition of a “payment institution” is extended to new types and categories of players. While the original PSD applied only to transactions occurring within the EU, the PSD2 will extend this scope to &8220;one leg out&8221; transactions.
Third-party account access: The directive will regulate account information service providers (AISPs). These providers act as aggregators of customer payment account information.
Prohibition of card surcharges: The regulation seeks to standardize the different approaches to surcharges on card-based transactions across the EU.
Security of online payments and account access through the introduction of new security requirements for electronic payments and account access, along with new security challenges relating to AISPs and PISPs.
The directive will affect everyone in the shifting payment landscape. This includes #banks, fintechs, the PCI (Payment Card Industry) as well as merchants.
How PISPs and AISPs will change existing interaction models between customers and banks, Accenture report ‘Seizing the Opportunities Unlocked by the EU’s Revised Payment Services Directive&8217;
PSD2 will bring both challenges and opportunities for European banks. Banks will be required to open up their infrastructure to third parties by offering APIs under the XS2A (access to account) rule. They will be forced to grant them access to their customers&8217; online account/payment services in a regulated and secure way.
On the other hand, PSD2 presents significant opportunities to grow new revenue streams &8211; by facilitating and monetizing access to raw data and banking services, for instance &8211;, capture customer ownership and process toward an extended ecosystem centered on the &8220;Everyday Bank,&8221; a concept that takes banking to being trusted, indispensable and central to consumers&8217; everyday activities.
EU banks: challenges and opportunities of PSD2, Accenture report &8216;Seizing the Opportunities Unlocked by the EU’s Revised Payment Services Directive&8217;
Featured image: Mobile banking concept by Ditty_about_summer, via Shutterstock.com.
The post EU&8217;s Payment Services Directive (PSD2): What It Is And Why It Matters appeared first on Fintech Schweiz Digital Finance News – FintechNewsCH.
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