Preparing for PSD2 and Open Banking

Powered by

All the vital news, analysis, and commentary curated by our industry experts.

The EU’s Directive on Payment Services 2 (PSD2) will accelerate the fragmentation of Europe’s retail banking industry following the global financial crisis. The opportunities brought about by PSD2 will energize banks with strong brand awareness and advanced digital offerings into pushing the boundaries of open banking. Increased competition from card issuers and non-bank third-party providers will prompt steady mid-cap players to fundamentally evaluate their strategies. Banks that are competing on price may see a future in collaborating with third parties, but in doing so will relinquish control over their customer relationships. Whichever path is chosen, the opportunity to offer, create, or co-create new products and services much more quickly is a positive change for the industry.

Scope

• Banks must ultimately view PSD2 as a business model change, and not simply a compliance issue.

• PSD2 fundamentally rebalances control over customer data in favor of the consumer.

• PSD2 has the potential to undermine customer loyalty by distancing banks from their customers.

• The capping of interchange fees will force card issuers to push aggressively into the personal loans market.

• Consumers show a strong preference for their bank to provide account aggregation services.

• Many banks will be in a position to offer additional apps over and above what is required by PSD2.

• Banks with an established presence in fintech through incubators and accelerators will be in a stronger position to capitalize upon the opportunities brought about by PSD2.

Reasons to Buy

Understand the impact of PSD2 on retail banking.

Identify strengths, weaknesses, opportunities, and threats posed by PSD2 and open banking.

Action key tactical steps to ensure compliance with PSD2 regulation.

Envisage how banks can provide value-added products and services in an open banking environment.

Swave
Dyme
MaxMyinterest
Spendific
Digit
Money Box
Acorns
Drive Wealth
Money Hub
Pension Bee
Namu
Iquantifi
Mobiliti
Five Degrees
Nymi
Visa
Sho-card
Personetics
Wallaby
Vouch

Table of Contents

EXECUTIVE SUMMARY

PSD2 will bring more choice to consumers, but will force banks to reconsider their business models

Key findings

Critical success factors

AIMS AND PURPOSE OF PSD2

PSD2 will empower consumers and spur competition

Key elements of PSD2

PISPS will bring value-added services to consumers

PISPs could meet consumer needs for money management tools

PISPs will challenge banks' "front-of-wallet" position

AISPs can boost customer engagement, but also customer acquisition

Consumers still trust banks to look after their money

Becoming an AISP will offer a significant competitive advantage

Security, use of data, and liability

Consumer concerns over the security of account aggregation must not be ignored

A STRATEGIC APPROACH TO PSD2 AND BEYOND

SWOT analysis

Fintech networks are a key strength

APIs are not simply technical solutions, but also business products

PSD2 will undermine customer loyalty

Strategic options

A TACTICAL APPROACH TO PSD2 COMPLIANCE AND OPEN BANKING

Banks need a plan of action

The first priority is to set up a framework

Create an API strategy

Design an API production process

Market, network, test, and consume

Prepare for delivery service support and optimization monitoring

THE FUTURE OF OPEN BANKING

The opportunity to collaborate and partner is a force multiplier for banks

Value-added banking of the future

CONCLUSION

Key takeaways

Fintech solutions

Verdict Financial's FinTrack product shows how banks can integrate value-added products and services into their offerings

APPENDIX

Abbreviations and acronyms

Methodology

Bibliography

Further reading

About Verdict Financial

Disclaimer

Table

Table 1: What PSD2 means for banks: SWOT analysis

Table 2: Fintech solutions covered in our monthly FinTrack publication

Figures

Figure 1: Consumers want tools to help them manage their finances

Figure 2: Consumer attitudes towards account aggregation

Figure 3: API program overview

Figure 4: Tactical steps required for open banking

Figure 5: Verdict Financial's Megatrends framework

Figure 6: John's Megatrend profile

Frequently asked questions

Preparing for PSD2 and Open Banking standard reports
Currency USD
$5,250

Can be used by individual purchaser only

$15,750

Can be shared globally by unlimited users within the purchasing corporation e.g. all employees of a single company


Undecided about purchasing this report?

Enquire Before Buying Request a Free Sample

Get in touch to find out about multi-purchase discounts

reportstore@globaldata.com
Tel +44 20 7947 2745

Every customer’s requirement is unique. With over 220,000 construction projects tracked, we can create a tailored dataset for you based on the types of projects you are looking for. Please get in touch with your specific requirements and we can send you a quote.

Sample Report

Preparing for PSD2 and Open Banking was curated by the best experts in the industry and we are confident about its unique quality. However, we want you to make the most beneficial decision for your business, so we offer free sample pages to help you:

  • Assess the relevance of the report
  • Evaluate the quality of the report
  • Justify the cost

Download your copy of the sample report and make an informed decision about whether the full report will provide you with the insights and information you need.

Below is a sample report to understand what you are buying

See what our customers are saying
testimonial-image
testimonial-image
testimonial-image
testimonial-image
testimonial-image
testimonial-image
testimonial-image

“The GlobalData platform is our go-to tool for intelligence services. GlobalData provides an easy way to access comprehensive intelligence data around multiple sectors, which essentially makes it a one-for-all intelligence platform, for tendering and approaching customers.

GlobalData is very customer orientated, with a high degree of personalised services, which benefits everyday use. The highly detailed project intelligence and forecast reports can be utilised across multiple departments and workflow scopes, from operational to strategic level, and often support strategic decisions. GlobalData Analytics and visualisation solutions has contributed positively when preparing management presentations and strategic papers.”

Business Intelligence & Marketing Manager, SAL Heavy Lift

“COVID-19 has caused significant interference to our business and the COVID-19 intelligence from GlobalData has helped us reach better decisions around strategy. These two highlights have helped enormously to understand the projections into the future concerning our business units, we also utilise the project database to source new projects for Liebherr-Werk to use as an additional source to pitch for new business.”

Market Analyst & Management, Liebherr-Werk

Your daily news has saved me a lot of time and keeps me up-to-date with what is happening in the market, I like that you almost always have a link to the source origin. We also use your market data in our Strategic Business Process to support our business decisions. By having everything in one place on the Intelligence Center it has saved me a lot of time versus looking on different sources, the alert function also helps with this.

Head of Key Accounts, Saab AB

Having used several other market research companies, I find that GlobalData manages to provide that ‘difficult-to-get’ market data that others can’t, as well as very diverse and complete consumer surveys.

Marketing Intelligence Manager, Portugal Foods

Our experience with GlobalData has been very good, from the platform itself to the people. I find that the analysts and the account team have a high level of customer focus and responsiveness and therefore I can always rely on. The platform is more holistic than other providers. It is convenient and almost like a one stop shop. The pricing suite is highly competitive and value for our organisation.

I like reports that inform new segments such as the analysis on generation Z, millennials, the impact of COVID 19 to our banking customers and their new channel habits. Secondly the specialist insight on affluent sector significantly increases our understanding about this group of customers. The combination of those give us depth and breadth of the evolving market.

I’m in the business of answering and helping people make decisions so with the intelligence center I can do that, effectively and efficiently. I can share quickly key insights that answer and satisfy our country stakeholders by giving them many quality studies and primary research about competitive landscape beyond the outlook of our bank. It helps me be seen as an advisory partner and that makes a big difference. A big benefit of our subscription is that no one holds the whole data and because it allows so many people, so many different parts of our organisation have access, it enables all teams to have the same level of knowledge and decision support.

Head of Customer Insight and Research, Standard Chartered

“I know that I can always rely on Globaldata’s work when I’m searching for the right consumer and market insights. I use Globaldata insights to understand the changing market & consumer landscape and help create better taste & wellbeing solutions for our customers in food, beverage and healthcare industries.

Globaldata has the right data and the reports are of very high quality compared to your competitors. Globaldata not only has overall market sizes & consumer insights on food & beverages but also provides insights at the ingredient & flavour level. That is key for B2B companies like Givaudan. This way we understand our customers’ business and also gain insight to our unique industry”

Head of Consumer Sensory Insights, Givaudan

GlobalData provides a great range of information and reports on various sectors that is highly relevant, timely, easy to access and utilise.  The reports and data dashboards help engagement with clients; they provide valuable industry and market insights that can enrich client conversations and can help in the shaping of value propositions. Moreover, using GlobalData products has helped increase my knowledge of the finance sector, the players within it, and the general threats and opportunities.

I find the consumer surveys that are carried out to be extremely beneficial and not something I have seen anywhere else. They provided an insightful view of why and which consumers take (or don’t) particular financial products. This can help shape conversations with clients to ensure they make the right strategic decisions for their business.

One of the challenges I have found is that data in the payments space is often piecemeal. With GD all of the data I need is in one place, but it also comes with additional market reports that provide useful extra context and information. Having the ability to set-up alerts on relevant movements in the industry, be it competitors or customers, and have them emailed directly to me, ensures I get early sight of industry activity and don’t have to search for news.

Senior Account Manager, TSYS
Financial Services
New
Peru Insurance Industry - Key Trends and Opportunities to 2028
$1,450 | May 2024
Financial Services
New
Apple Pay - Competitor Profile
$350 | June 2024
Financial Services
New
Luxembourg PESTLE Insights - A Macroeconomic Outlook Report
$500 | June 2024
Go even deeper with GlobalData Intelligence Center

Every Company Report we produce is powered by the GlobalData Intelligence Center.

Subscribing to our intelligence platform means you can monitor developments at Preparing for PSD2 and Open Banking in real time.

  • Access a live Preparing for PSD2 and Open Banking dashboard for 12 months, with up-to-the-minute insights.
  • Fuel your decision making with real-time deal coverage and media activity.
  • Turn insights on financials, deals, products and pipelines into powerful agents of commercial advantage.