PSD2 is an EU directive that aims to promote innovation and competition in banking by requiring banks to open up access to customer account information and payment initiation to third party providers. It allows new types of financial service providers called TPPs to access customer bank accounts once authorized by the customer. PSD2 specifies requirements for strong customer authentication and limits on screen scraping, while still designating ISO20022 as the messaging standard for payments. APIs are seen as the key enabler for implementing open banking under PSD2 by allowing banks to share data and payment functionality with third parties in a secure manner. However, PSD2 also threatens to disintermediate banks by empowering technology companies and new fintech competitors that can utilize open banking

1. PSD2
An Open Banking Revolution
Killian Clifford

2. “The biggest banks in the world in 2025 will be technology companies”
Brett King
“Banks need to become tech companies - or they won't be around for much longer”
Pascal Bouvier
“Banks that are not prepared for new FinTech competitors face certain death”
Francisco González
In 5 years banking will not esist

3. YOU”
“YOUR
BANK
NEEDS

4. PSD2

5. Brief History
✴ Original PSD 2007
✴ Regulate developments in payments since
✴ Consumer protection
✴ Foster innovation
✴ Other EU Directives

6. Brief Scope
✴ Payment Accounts & Payment Institutions
✴ New Types of service providers - TPPs having XS2A!
PISP
X
Payment
Purchase
Instruction
AISP
Bank 1
Bank 2
Bank 3
✴ Payment Initiation - PISPs
✴ Account Information - AISPs

8. Confusion

9. EBA

10. SCA & CSC RTS
✴ SCA exemption limit €30 remote - €50 contactless
✴ Further sliding scale of risk based exemptions to €500
✴ Screen scraping banned
✴ Max AISP calls - 4 per day
✴ ISO20022 remains payment messaging standard

13. PSD2

14. APIs- The Open Banking Enabler
APIs are a new channel

15. APIs

16. Uber API

17. Uber as a Platform

18. APIs are powering disintermediation
All are platforms powered by APIs

19. Will APIs disintermediate banking?

20. Will APIs disintermediate banking?

21. Will APIs disintermediate banking?

23. World’s Largest Companies
✓All Tech (GAFA-M)
✓All have payment
licences

24. Tech Giants to Dominate Payments

25. What to do?

27. APIs- Disintermediating Banking

28. Lightbulb Moment!

31. Innovate like a FinTech

34. Open Banking in Practice

35. Open Banking in Practice

36. Open Banking - Partnering

37. “Mobility is about to enter the post-app era”
Gartner
Powered by PSD2

38. Banking & Payments - Post App Era
Enabled by PSD2
Virtual Assistants
(pay by voice)
Chatbots
(pay by AI)
Wearables
(pay by accessories)
VR
(pay by sight)
IoT
(pay by appliance)
Biometrics
(pay by body)

39. Finlab
In partnership with Synechron

40. Open Banking is…

41. Thank You