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  • Kirsi Larkiala

OPEN BANKING & AND THE “HOKKUS POKKUS” FROM PSD2 TO PSD3 WORLD?

Updated: Mar 15, 2019

Well, it has been a long journey since PSD2 became effective in January 2018. The market has slowly started to act on it. If we take a helicopter view, we see that there are still some banks who are not exactly PSD2 API- ready in real-life. Also, handful of fintechs missing true compliant plug-in view on their solutions. But there are many players who are ready not only to comply, rather to innovate. Some even said already in last summer Money20/20 and in latest Paris Fintech Forum that PSD2 and SEPA Instant Payments could pave the way to PSD3. This could create new payment standards and new ecosystems in Europe.



Open banking is not just PSD2 and payments. Instant payments is decoupled from the PSD2, though a closer link between open banking and instant payments could increase competition in payments services, which was the original “need behind the need” by regulators. PSD2 is not just payments, from business point of view, it´s rather cash management and good grip of your liquidity management for corporate customers. The whole purpose is about to have access to other types of accounts, not just current accounts, but access to all accounts including credit cards, loans and more.


PSD2 provides a better balance in the industry regarding interests of corporates, banks, fintechs, merchants. PSPs etc. since these companies can become a TPP themselves.

Other industries such as retailers, tech firms and utilities could open up as well especially in PSD3 context. How open will banks be in the future? All these developments will determine if there will be a need for a PSD3, or not. And regulation goes hopefully agile, because rigid regulations may no longer be suited to a rapidly-changing world.


There is a genuinely new financial services ecosystem coming into existence. But who will take maximum advantage of it? The banks or Fintechs or the collaboration? At the end customers are taking control and decide if banks and Fintechs have delivered good services to or not. It’s also important that the European banking market takes a collaborative approach and build business models that serves the customers and generates new revenue streams for financial services including Fintechs. Otherwise, the industry is taking a risk and there is a possibility of tech giants creating their own model…or the regulator doing it through PSD3. Or is that a risk, is it rather start for a new journey for better customer solutions?


We are on our way to building a harmonized, open and innovative Financial Services ecosystem in Europe.


Finnish Fintech Ecosystem Ltd Sofa Sessions


More about the open banking & innovation on 22nd of May, 2019 and through our web pages: www.fintechecosystem.biz .

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