If 2018 was the year of GDPR, 2019 was the year of PSD2.
Short for Payment Service Directive II, PSD2 is a highly awaited EU directive that will bring some significant changes to the way we build financial services.
Set to revolutionise the financial industry, PSD2 introduces an array of new reforms aimed to increase competition and simplify payments across the European Union.
But. What do you actually need to know about the new EU directive?
Let’s have a look at 3 of the key factors that will change because of PSD2.
1. Goodbye to the banks’ monopoly on financial data
For hundreds of years, banks have been the trusted holder of our money and financial data. But to ensure a competitive and innovative financial sector, the EU has opened the banks’ door to new competitors.
By doing that, all licensed businesses will be able to create new services on top of bank data — and offer new ways to initiate payments.