Open Banking Europe, the entity operated by EBA Clearing subsidiary Preta, has published a directory intended to list all publicly available bank APIs in the European Union. Contact information for both ASPSPs and TPPs will be stored in the telephone book, allowing regulated market participants to contact each other more easily.
Earlier studies found a surprising lack of both consumer and merchant awareness about the European Union’s Strong Customer Authentication (SCA) and second Payment Services Directive (PSD2) regulations. SCA awareness is thankfully high among the payment providers tasked with executing and communicating the mandates to businesses and consumers. The PSD2 optimization company, Riskified, conducted a survey recently and found the vast majority (88 percent) of retailers believe that most consumers are at least somewhat aware of the new regulations. Compliant firms are also seeing increased consumer trust, engagement and satisfaction. Eighty-six percent of merchants considering open banking say they are at least somewhat confident it will open up new opportunities.
In a roundtable discussion held Wednesday in London hosted by digital payments firm PPRO, industry leaders met to explore the impact PSD2 has imposed on key players in Open Banking and the changes needed to achieve the regulation’s objective in 2020 and beyond. Regulatory fragmentation, implementation delays and a lack of consumer understanding is resulting in a lack of demand - a vital force for spurring incumbents to streamline processes and ensure regulatory deadlines are met. Consumer trust also remains a central component for every player in working towards Open Banking. Even so, it’s naïve to think that APIs will be the dominating tool for data pulling in the future. “What we need is to incentivise players to allow direct access to accounts through credential sharing which in the absence of APIs will be the key enabler for data sharing.