View all newsletters
Receive our newsletter - data, insights and analysis delivered to you
  1. Technology
November 23, 2017updated 26 Jul 2022 6:17am

PSD2 nears as UK Open Banking accounts for more products

PSD2 is arriving in January 2018, at which point banking customers will be free to leverage the services provided by third-parties.

By Tom Ball

With the PSD2 initiative arriving at the beginning of 2018, the UK Open Banking project is bringing the full spectrum of payment account types on board.

This move will include digital wallets and cards including both credit and prepaid, making them applicable to non-bank service providers in the wake of the new directive.

Working swiftly with the time that remains, the UK Open Banking project was brought into being by the Competition and Markets Authority (CMA), the body responsible for bringing major UK current account providers together to set out API standards for PSD2.

Imran Gulamhuseinwala, trustee of the Open Banking Implementation Entity, says: “Key to any innovation is the process of discovery and it became clear through the second half of 2017 that there is much more the OBIE could do to drive adoption of Open Banking and create a richer environment for new services.”

PSD2 poses an immense challenge to traditional banks that have so far enjoyed the full control of customer data, but the new directive will relinquish that control and open up customer data to third party providers of banking services. This means customers can choose to stay with their original bank, while leveraging the innovative offerings of fintechs and others.

Bitcoin price rockets to almost $8,000 as ‘hard fork’ fails
2017: The Year of the Bitcoin
IBM takes control of EU data with cloud data centre upgrades

“These enhancements should give even greater confidence to the fintech community to seize the opportunity to participate fully in the financial services ecosystem. They will create standards for future dated, recurring and international payments as well as all the payment and product types covered by PSD2,” Gulamhuseinwala said.

In terms of UK banks, HSBC has been ready to spearhead the directive as an opportunity, having already developed an open banking platform; this would give customers the ability to connect accounts held with other banks. It is essential that the established banks look to provide competitive, innovative services so as to avoid becoming a basic commodity.

Content from our partners
Scan and deliver
GenAI cybersecurity: "A super-human analyst, with a brain the size of a planet."
Cloud, AI, and cyber security – highlights from DTX Manchester

Topics in this article : , ,
Websites in our network
Select and enter your corporate email address Tech Monitor's research, insight and analysis examines the frontiers of digital transformation to help tech leaders navigate the future. Our Changelog newsletter delivers our best work to your inbox every week.
  • CIO
  • CTO
  • CISO
  • CSO
  • CFO
  • CDO
  • CEO
  • Architect Founder
  • MD
  • Director
  • Manager
  • Other
Visit our privacy policy for more information about our services, how Progressive Media Investments may use, process and share your personal data, including information on your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.