Big Bytes

PSD2 Opportunity in Retail Banking

May 2016, Gurgaon

• The capping of interchange fees will force card issuers to push aggressively into the personal loans market.
• Consumers show a strong preference for their bank to provide account aggregation services.

Ken Research releases latest publication titled “Preparing for PSD2 and Open Banking”, provides an insight on how the PSD2 will impact retail banking by explaining strengths, weaknesses, opportunities, and threats posed by PSD2. It comes very handy in strategizing steps to ensure compliance with PSD2 regulation and how banks can provide value-added products and services in an open banking environment.
The revised PSD will Standardize, integrate and improve efficiency in the European Union payment system, offering better consumer protection and promoting innovation in the payments space and reducing costs. It lays down clear norms on the use of emerging payment methods such as mobile payments, online payments and other new and emerging payment services into the regulation. It is believed that PSD2 will homogenize pricing and improve payment security across European Union by creating an equal playing field for payment service providers and enabling new companies to get into the payments space.
PSD2 will have a huge impact on the banks requiring a lot of investment on their part for technological requirements and opening up opportunities for third-party players increasing competition. Banks will have to carefully consider their strategy in open banking, with PSD2 on the horizon and the general move towards more open consumer data. In order to have a competitive edge and progress, banks should not view PSD2 simply as a compliance exercise, but recognize these changes as catalysts for accelerating their own digital payment programs.
The introduction and regulation of third party payment service providers (TPPs) are of two types those that offer Payment Initiation Services Providers-PISP and Account Information Service Providers-AISP. PISPs will challenge banks’ “front-of-wallet” position while AISPs can boost customer engagement and also customer acquisition.
PSD2 fundamentally rebalances control over customer data in favor of the consumer and has the potential to undermine customer loyalty by distancing banks from their customers. Banks with an established presence in fintech through incubators and accelerators will be in a stronger position to capitalize upon the opportunities brought about by PSD2.

Key points in the report:
• SWOT Analysis on PSD2 and open banking
• Guidance as to how banks can shape their propositions leveraging third-party providers
• How banks can integrate value-added products and services into their offerings
• Consumer attitudes towards account aggregation
• Fintech solutions covered in monthly FinTrack publication

For more coverage, click on the following link:

Similar reports:
Mass Affluents: Attitudes and Needs in the UK
Mass Affluents: Product Holding and Preferences in Hong Kong
Ken Research
Ankur Gupta, Head Marketing & Communications

Leave a Reply

You may also like:

Banking / Finance Corruption Economy Investment Law / Legal Politics

Official views of angry banking consumer – beware of lures for loans, financial terrorists

Bank & some greedy 3rd parties trying to extort with its covert & unilateral legal showoffs which resulted in business closure and huge losses for me, that fight for justice has not even started.

Read More
Agriculture Banking / Finance Economy Energy Infrastructure Lifestyle Politics World

Make sure banks don’t fund more coal

The science is abundantly clear that we need to keep fossil fuels in the ground to ensure a future for our planet, and that means we can’t let any new coal plants be built anywhere in the world. So the Vung Ang 2 coal-fired power station in Central Vietnam – currently planned for financing by Japan’s biggest banks – is a definite no-go.

Read More
Art Banking / Finance Law / Legal Lifestyle People Politics Startup

How to Create Armies of MLM Cheats using NLP Sales Training in every industry!

Streaming Soon on VIP HotBihadi
Chanakya’s Dihadi – The Satire

Directed by Ragadi
Produced by Marwadi
StarRing Rajput Anadi
Presenter Mainstream Lomdi
Promoters Social Agaadi

Special Thanks to Neta Khiladi

Read More