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Open Banking / PSD2

The Movement That is Changing
Retail Banking

The Movement That is Changing Retail Banking

What is Open Banking and PSD2?

Open banking refers to a series of reforms to how banks deal with financial information. It arrived alongside a regulation in Europe named “the second Payment Services Directive” (PSD2), which came into effect on January 13th, 2018, and was mandatory for banks to implement before September 14th, 2019.

Open banking is the practice of sharing financial information electronically, securely, and with the customer’s prior approval. Application Programming Interfaces (APIs) allow third parties to access financial information efficiently, hence leveraging the development of new apps and services. For any third party to have access to customer data, the customer will have to first opt-in.

The mandatory/regulatory adoption of PSD2 means that banks are required to give their customers access to their own data, subsequently allowing customers to provide that data to third