The survey found that PSD2 brought both opportunities and challenges for FinTechs. While it opened new possibilities for growth and partnerships, FinTechs faced technical challenges like strong customer authentication and unreliable bank APIs. Half of FinTechs reported no collaboration with banks. Both FinTechs and banks see potential for more data sharing and a standardized European payment system in the future. Banks approached PSD2 as either basic compliance or an opportunity to improve customer experience and prevent losing market share.

1. PSD2 / OPEN BANKING BAROMETER – RESULTS PRESENTATION
ARNAUD SIRTAINE

2. ABOUT THE BAROMETER
 The purpose of the barometer is to accurately measure the current state of open banking, its
challenges and evolution towards open finance, and what to expect in the future.
 Two surveys were create: one for FinTechs and one for banks.
 The results are based on the responses of 11 FinTechs and 3 banks.

3. FINTECHS’ RESULTS

4. IMPACT OVERVIEW
 PSD2 brought opportunities and challenges
 Growth, opening of new possibilities, rise of new partnerships, improvement of payment experience
for users
 Technical and organisational challenges

5. MAIN CHALLENGES
 Technical challenges:
 Strong Customer Authentication (SCA)
 Unreliability of ASPSPs’ APIs (stability and data quality)
 Organisational challenges:
 Procedure to obtain a licence
 Customers’ perception of risk

6. SYNERGIES WITH BANKS
 No collaboration in 50% of the cases
 Interesting potential can arise when a strong relationship is established
 FinTechs are able to build and integrate innovative solutions on top of the mandatory open
banking setup
 Banks solutions can easily be promoted by FinTechs through marketplaces and / or similar solutions

7. FUTURE STEPS
 Extension to savings data, insurance data and credit information
 Access to more customer information and transactional data that can be anonymised

8. BANKS’ RESULTS

9. IMPACT OVERVIEW
 Two possible strategies:
 Simple compliance
 Drivers: cost-saving strategy
 Going further with possibilities
 Drivers: better customer experience, fear of losing market share

10. MAIN CHALLENGES
 Financial challenge
 Required resources: budget and employees
 Legal challenge
 Legal complexity to become compliant

11. SYNERGIES WITH FINTECHS
 Synergies usually occur between FinTechs and larger banks because of the budget required to
spend on innovation.
 Examples of synergies:
 Banks can leverage on FinTechs’ innovations
 Banks can use FinTechs’ platforms to reach bigger and new audiences
 Banks can offer premium services to FinTechs

12. FUTURE STEPS
 Two of the three banks believe there are still major changes to come
 Ideas for future developments:
 One European payment scheme
 Same speed/progress in all countries
 Share securities and savings accounts
 Raise awareness of consumers regarding the opportunities that the PSD2 offers and its safety

13. CONCLUSION  Improvement tracks:
 Simplification of the accreditation procedure for AISPs and
PISPs
 Standardisation of proposed interfaces for connectivity at
merchants and banks side
 Setup of a global PSD2/Open banking authority to ensure
interoperability between all involved players at a European
level and to build a validation process for all possible partners
of the ecosystem
 Standardisation of passporting rules and regulations
 Central switching, directory, API specs for FinTechs, Schemes,
Banks
 Redefinition and/or simplification of user-oriented processes
such as authentication
 Standardised legal framework