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What opportunities will PSD2 present?
We kicked off our 2016 Payments Breakfast series on Thursday 11th February 2016 with the hugely popular topic, ‘What opportunities will PSD2 present?’ We were hoping it would be a compelling meeting of thoughts and opinions, and it didn’t disappoint.
Odgers Berndtson and Odgers Interim have been hosting Payments and Fintech events for over 2 years and this breakfast had some of our usual guests and lots of new faces from the big four banks, challenger banks, the incumbent payments organisations and new FinTech entrants. The breakfast kicked off with the reminder that from 13th January 2018, 701 days to be precise, PSD2 will be national law and the directive will be in place. Over the last 6 months we have asked a number of our clients what PSD2 means to them, and some examples of the varied feedback are: “There will be those who will just do the minimum to comply”, “whoever gets the customer experience right will be the winners” and “whoever gives the best security and customer peace of mind will win”. The room was in agreement that PSD1 and the FinTech industry as a whole wasn’t as exciting in 2007, but PSD2 is a game changer. Protection and customer collaboration has always been very important but it simply wasn’t as relevant and considered 8 years ago due to the technology available and the customer psyche when it came to everyday banking and payments.
The breakfast attendees shared thoughts on whether collaboration between banks and non-banks is necessary and if so, should it just be in relation to standards. It was made clear that something has to happen within the sector. Getting the user case defined is very important and making sure that compliance and security is enhanced is key. As the event progressed, what became clear was that regardless of who, how or what institutions decided to do, the customer wants choice and change, with the sector needing to “bite the bullet” and move forwards. The consensus around the table was that whatever happens, the market would have been forced to progress with new products for its customer regardless of PSD2 happening. The event concluded with the feeling that there is a lot to be done and everybody is working hard to position themselves in the correct way, but that time is ticking.
We will be revisiting this PSD2 theme in November and we fully expect more questions to have been answered. In the meantime, collaborating with each other and building the best security and compliance functions should eventually win trust and that is what should help define success. We look forward to hearing about the journey everyone undertakes over the next 8 months.
On Wednesday 9th March we will be hosting the next breakfast in the series, “What is the future of clearing?” If you are interested in attending, please get in touch.
Categories: Financial Services