To a bank PSD2 might feel like a leg up for competitors, investing millions in developing APIs in order to support new and existing 3rd parties to gain market share.
New service providers such as Payment Initiation Services Providers – (PISP) or Account Information Service Providers (AISP) are going to disrupt the market by introducing new and improved payment services whilst others will be able to deliver real time account information in an array of channels and formats.
Surcharging will become a thing of the past whilst customer fraud protection and authentication will be enhanced.
Banks may feel under threat but those that embrace PSD2 and involve customers can make it work in their favour, remembering that they start from a position of strength given they already have the customer relationships. They can then develop partnerships with the new players and devise functionality and services which enhance a customer’s experience not dilute it.
1. It’s going to happen whether you like it or not
Embrace PSD2 in 2017, its going to happen. Invest in your technology. Provide the very best API’s and be open to working with new 3rd party players. Through partnerships will come growth and the players who don’t will struggle to gain lost ground.
2. Remember the customer
What banks must remember is that they have the greatest commodity and without it, there is no business. I’m referring to the customer. Customers don’t want to change banks or accounts, they simply want to be heard and have the services that they want provided. Talk, educate and listen to your customer because if you don’t someone else will.
3. A lot more fish in the sea
When a regulation like PSD2 is introduced into the market its sole purpose is to drive innovation, reduce costs and increase competitiveness. Choose your 3rd party partners well as many will stagnate, get gobbled up in acquisition or simple fall to the way-side. Banks have the customers, compliance/regulatory expertise and financial security to help shape how PSD2 is delivered in 2017 and beyond.
At consumer intelligence we view regulatory changes like PSD2 through the eyes of the consumer. We talk to 1000’s of customers daily and ask them the questions banks need to be asking. Our insight has helped financial organizations develop products, services and market strategies which meet the customer needs as well as the regulatory requirement.