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.
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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:
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Needs in the UK
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Holding and Preferences in Hong Kong
Contact:
Ken Research
Ankur Gupta, Head Marketing &
Communications
+91-124-4230204
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