Banks with a proactive response to PSD2 (Payment Services Directive) will steal a march on their competitors, according to Fintech firm Trusek.
Responding to last week’s PwC report into the response of banks to PSD2, Trusek co-director Steven Hatton said that banks have an enormous opportunity with the new legislation.
Steven said: “Those banks that act first will gain an advantage because they already have a trusted relationship with their customers.”
He added: “By creating their own financial oversight and management tools the banks, along with their customers, will be able to see their finances in one place.
“This will then enable banks to offer more suitable products to their customers too.”
But referring to a 2018 deadline, when PSD2’s mandate takes effect, he also said that banks need to act fast “before the free-for-all feeding frenzy begins”.
The report, published by PwC last week, claimed that more than two-thirds of bankers fear that PSD2 will mean they lose control of the client interface.
Steven, who has a wealth of experience in international financial development, says that despite his company’s technological background this is not just about technology.
The co-director suggests that “those creating the strategies within banks need to change their mindset”.
He said: “Banks need to understand that including third party services is not a bad thing, and they must convince their customers that they are acting in their best interests.”
The core of Trusek’s proposal claims that by utilising a connections platform to act as a bridge between their core banking system, there only needs to be one set of API’s from this system.
It is suggested that there would be significant benefits of using a single API, including a reduction in the amount of development required, and the ability to leave current core systems undisturbed.
In a survey of 1000 German consumers, PwC found that almost 90 percent already use third party digital payment services such as PayPal and that over 80 percent believe that companies like PayPal can handle transfers as reliably and safely as their banks.