Over 40% of the banks are planning to integrate own products and functionalities into foreign ecosystems, hence, providing an open bank offering in the next 5 years. This shows a report by PwC called “Catalyst or threat? The strategic implications of PSD2 for Europe’s banks”. The data for the study is coming from interviews with senior executives in 30 leading banks across Europe and surveying 1000 consumers in Germany.
According to the report, 64% of the banks intend to integrate foreign products or functionalities into own digital offering and 32% expect to offer new functionalities that are essential for existing ecosystems. Nearly 90% of the bank executives believe that PSD2 will affect their businesses but they are still not sure how to respond to the implications of the directive.
PwC also provides insights about the business models that could be used to compete more effectively in an open banking environment. The study provides examples of organizations which are leveraging APIs and the opportunity for open banking in different ways.
The revised PSD2 Directive follows the existing EU Directive on Payment Services (PSD) that helped create a single payments market across Europe in 2007. The regulation calls for banks to open up access to their accounts to third parties in order to consolidate account information and make payments. Hence, the directive will stimulate the development of new business models and a wide range of new banking services.
For the full report of PSD2 read here.