https://gidley.co.uk/categories/fintech/ Recent content in Fintech on Gidley's Gossipings Hugo en Sun, 23 Oct 2016 12:00:00 +0100 https://gidley.co.uk/post/psd2/ Sun, 23 Oct 2016 12:00:00 +0100 https://gidley.co.uk/post/psd2/ <p>There has been quite a lot of excited commentary about how PSD2 will revolutionize the banking industry, so I thought it was worth a bit of analysis to see what the actual outcome is likely to be.</p> <h1 id="what-is-it">What is it</h1> <p>PSD2 is a EU directective aimed at</p> <ul> <li>Forcing open API&rsquo;s on the payments industry to open up competition including ability to deliver cross border direct debit</li> <li>Increasing security of payments/banking by mandating &lsquo;strong authentication&rsquo; based on multiple factors</li> <li>Better transparency on charges for payments</li> </ul> <h1 id="what-are-people-saying-it-will-mean">What are people saying it will mean</h1> <p>A number of commentators are crediting PSD2 with opening up the EU banking market to much more competition from non-banks and between banks. The theory is that these new entrants will use the API&rsquo;s expose to create new and exciting services that will take marketshare away from banks.</p>