41% of European banks did not comply with the latest PSD2 deadline earlier this month — here's what they need to do:
This is an excerpt from a story delivered exclusively to Business Insider Intelligence Fintech Briefing subscribers. To receive the full story plus other insights each morning,Forty-one percent of European banks did not comply with the latest PSD2 deadline earlier this month, which required them to provide a testing environment for third-party providers , according toBusiness Insider IntelligenceNot meeting one deadline means that some banks will have to play catch-up.
TPPs can't start testing open application programming interfaces to access data. By September 14, TPPs are expected to use APIs from banks to access their banking data. However, with some banks not meeting the testing deadline, TPPs might struggle to get fully operational to connect with APIs by September, potentially resulting in disruption.Work with fintechs that specialize in helping to meet regulatory deadlines.
Work closely with the regulators to ensure they understand what is expected.Earlier this month, the European Banking Authority clarifications on PSD2 based on issues voiced by a working group, which includes TPPs and account servicing payment service providers . Banks would be wise to read clarifications closely. By being a part of working groups where they can raise concerns that can be voiced to regulators, banks can ensure that they understand what is expected from the regulation.
The bigger picture: With less than six months to go until banks have to open their APIs to TPPs, it doesn't seem likely that all banks — especially the 41% that are already behind — will be up and running to meet this deadline. While banks are partly responsible for falling behind on new regulations, it should be noted that PSD2 is a huge lift even for big players with enough financial and human resources. Those banks that have their APIs up and running will be most likely to attract TPPs to help them build value-added services for their customers. Hence, the banks that were able to meet the latest deadline could be most likely to succeed in the digital era of open banking.1.
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
41 Gadgets That Would Make James Bond JealousThese products are so great, you're sure to ~bond~ with them instantly.
Read more »
Here's how Congress can override Donald Trump's veto on resolution terminating national emergency declarationIn a bipartisan rebuke, the Senate passed a resolution 59-41 terminating his emergency declaration on Thursday.
Read more »
Man on electric scooter killed in hit-and-run accident in Santa MonicaThe Santa Monica Police Department are asking for the public’s help in finding the driver who fled after striking a 41-year-old man who fell into the road while riding an electric scooter and died a short time later at a hospital.
Read more »
GOP: Few targets met House deadline on Trump corruption probe docsA small fraction of the 81 individuals and entities connected to Donald Trump have turned over documents to the House Judiciary Committee by Monday’s deadline as part of the panel’s obstruction of justice investigation
Read more »
Europe's central bank just flashed a warning for any potential Deutsche Bank-Commerzbank merger'I do not particularly like the idea of national champions, of European champions,' the eurozone's top financial supervisor told the Financial Times.
Read more »
Dollar holds gains, sterling up on Brexit deadline extensionThe dollar largely held onto the previous session's gains in early Asian tr...
Read more »