open banking

WHAT IS PSD2?

PSD2 is a data and technology- driven Directive that aims to drive increased competition, innovation and transparency across the European payments market, while also enhancing the security of internet payments and account access.

The core of the PSD2 regulation is the requirement for banks to grant Third Party Providers (TPPs) access to a customer’s online account/payment services in a regulated and secure way. Enabling ‘Access to Account’ (XS2A), a secure access via APIs to customer accounts and data if the account holder provides consent. This by using customer identity verification and authentication via APIs.


THE PAYMENT INDUSTRY IS CHANGING RAPIDLY
Just like the retail banking as a whole, the payments industry is experiencing widespread and rapid changes, threatening the incumbent bank’s payments revenues and customer ownership. Specifically in these areas:
mobile
MOBILE DEVICES
More and more transactions take place on mobile devices, and customers demand real-time, personalized and seamless payment experience.
new competition
NEW COMPETITION
FinTech companies are challenging the traditional financial services providers with new digitally-enabled services, expanding the payments ecosystem.
technology advancement
TECHNOLOGY ADVANCEMENT
A digitized end-to-end value chain with Immediate payment infrastructures, blockchain, mobile authentication and the ’Internet of Things’ (IoT) creates new ways to pay.
disruption
DISRUPTION
The PSD2 regulatory initiatives disrupt the industry and encourage competition and innovation in the whole financial industry.

HOW PSD2 WILL DISRUPT
TRADITIONAL BANKING

THIRD-PARTY PAYMENT INITIATION
(Payment Initiation Service Providers or PISPs)

Third parties will be able to initiate online payments to an e-merchant or other beneficiaries directly from the payer’s bank account via an online portal - enables new payment methods.

Merchant acquirers, banks, FinTech companies, and large merchants would likely have the capacity to provide such payment initiation services.

THIRD—PARTY ACCOUNT DATA AGGREGATION
(Account Information Service Providers or AISPs)

Third parties, which PSD2 formally refers to as ”account information service providers,” will be able to extract a customer’s account information data including transaction history and balances— enables new services utilizing this data.

Banks, FinTech companies, and non-traditional financial services companies would likely have the capacity to provide such account information services




open banking

THE BERLIN GROUPS
NEXTGENPSD2 API

The Berlin Groups initiative of a harmonised PSD2 Standard is a very interesting approach of standardization and will solve a lot of integration issues that otherwise will be a huge problem if different banks provides their own version of PSD2 APIs.

The 2nd of October 2017 the Berlin Group started a marketing consultation on the standards of a harmonised NextGenPSD2 European API Standard for accessing bank accounts.

Entiros can now offer a draft Swagger, of the Berlin Group NextGenPSD2 API. A result of the documentation currently provided by the Berlin Group. Sign up to the PSD2 VAN to get access to the Swagger and start testing.

TAKE ME TO THE SWAGGER

THE PSD2 TIMELINE

Get a clear picture of the process of the Revised Payment Services Directive (PSD2). We have created a timeline of the documents and deadlines presented by the European Banking Authority (EBA), regarding the interpretation of the PSD2 regulation.

CHOOSE A STRATEGY

Respond effectively to the threats and opportunities of PSD2. Deciding whether to become a banking ‘utility’, or to continue to play a central role at the heart of your customer’s daily lives.

comply with psd2
COMPLY WITH PSD2
  • Comply with PSD2 requirements
  • Give 3rd parties secure access to data required by European law
  • Provide a basic-level open API
FACILITATE AND MONETIZE ACCESS
FACILITATE &
MONETIZE ACCESS
  • Monetize access to more developed data services
  • Expand data access beyond what is required by European law
    ADD NEW SERVICES AND BUILD RELATIONSHIPS
    ADD NEW SERVICES &
    BUILD RELATIONSHIPS
    • Become a Third Party Provider (TPP), the consumer interface to other banks for accounts and payments
    • Expand the banks position in the customer value chain
      EXPAND ECOSYSTEM AND HARVEST VALUE
      EXPAND ECOSYSTEM &
      HARVEST VALUE
      • Rapidly grow a vast network of external partners and developers
      • Be the everyday bank for the consumer, through an open ecosystem of innovation

        JOIN THE PSD2 VALUE ADDED NETWORK

        Accelerate your TPP and bank connectivity by joining a collaborative network.
        Connect once – innovate with everyone

        CONNECT WITH EVERYONE
        High workload - Manual - Ends up in spaghetti
        CONNECT TO THE PSD2 VAN
        A Value Added Network for collaboration and standardization