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Is PSD2 still fit for purpose? The European Commission wants your views

The European Commission is seeking market feedback on open finance rules and amendments to the PSD2 Directive to address the arrival of Big Tech, fintechs and cryptoassets.

2 comments

Is PSD2 still fit for purpose? The European Commission wants your views

Editorial

This content has been selected, created and edited by the Finextra editorial team based upon its relevance and interest to our community.

The second Payment Service Directive was adopted in 2015, with most of the rules implemented by January 2018.

In the interim, the payments sector has been buffeted by the fintech phenomonen and the steady encorachment of Big Tech firms into financial services.

The Commission says the review will assess the relevance of PSD2, in particular in light of market developments regarding new market players, services and technologies.

On PSD2, the Commission intends to "evaluate whether the scope, exclusions and definitions of the directive are still appropriate to ensure relevant market players are regulated, a level playing field exists and risks are sufficiently mitigated".

Other aspects of the rules relating to payment fraud and access to account data and payments infrastructures, will also be opened up for scrunity to see if they are still fit for purpose.

For the Open Finance consultation, the Commission is seeking feedback oon whether to extend access rights beyond purely transactional data to encompass other aspects of finance, including mortgages, savings, pension services and insurance.

Submission for the PSD2 consultation are open until 2 August. The open finance consultation closes on 5 July. A separate consultation on technical matters related to PSD2 also closes on 5 July.

Open Banking and Open Finance in Europe will be explored in panel sessions during the Euro Banking Association and Finextra’s upcoming EBAday 2022 conference.

After two years as a virtual conference, EBAday 2022 will run in person for its seventeenth year, welcoming a host of board directors, chief executive officers, and payments and technology heads from Europe’s leading banks, as well as selected fintechs.

Register now to attend EBAday 2022 in Vienna, Austria on the 31st of May and 1st of June.

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Comments: (2)

Vinay S Product & Tech at Perfios

PSD2 should look at the way Open banking API is implemented in India, called Account Aggregator. All liabilities are covered under this.

Ketharaman Swaminathan Founder and CEO at GTM360 Marketing Solutions

For a combination of cultural, technical and business reasons, EU will never adopt the Indian AA framework (or Aadhaar or UPI, etc.).

The pace at which EU regulation moves relative to fintech, my going in position is that any EU reg crosses its sell by date by the time it's implemented. In some ways, that's a corollary of the old saying, "When a software is fully tested and found bug free, it's obsolete".

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