This Saturday marked the deadline for the EU’s second Payment Services Directive (PSD2) legislation. This legislation has had a fundamental impact both on how banking and payments are done and on how they’re secured. Banks now have to let third parties access customer data while ensuring it’s totally secure; it’s a tough balancing act.
Adam Prince, Vice President Product Management, Compliance & Brexit, Sage, said: “The introduction of the EU’s PSD2 regulation marks the start of a highly positive change for the finance and accounting industries: a move towards a more efficient and secure digital future and more valuable customer service. At its heart, PSD2 is designed to drive innovation for today’s digital consumers, all while giving them more control over their data.
“The benefits for banks are obvious: higher-quality banking data, faster responses to customer feedback, higher levels of security and reduced fraud. Likewise for their customers: increased privacy rights, greater competition among financial services providers leading to reduced costs and more flexible ways to bank and make payments.
“For our customers working out how the changes will impact their processes, it’s essential to work with the right partner to ensure that data transfer continues to happen as smoothly as possible.
“At Sage we have been working to ensure our customers are compliant with this regulation. Our priority is to help customers navigate the changes, understand the impact on their business and ensure that they can thrive as a result.
“Make no mistake – PSD2 is a positive step. The future of banking and payments is digital, and consumers demand more flexible, tailored services. If banks and customers take steps to quickly adapt to the change now, the benefits will soon be realised.”