PSD2 regulates data sharing and account access
The revised payment services directive (EU) 2015/2366, known as PSD2 introduces new rules on data sharing aimed at creating an Open Banking ecosystem. In particular, it requires payment services providers to provide third parties with access to their customers’ bank accounts in order to share selected sensitive information at the customer’s explicit request.
The regulator believes this piece of financial information is useful to offering new services beneficial to customers, while at the same time stimulating competition in the fields of payment, banking, insurance, credit and related products/services.
PSD2: data sharing rules should be applied beyond the financial sector
Limiting the stimulus to an Open Banking ecosystem is short-sighted. In a fast-moving and constantly evolving marketplace like the one we live in today, players engaged in all industries make use a wide variety of data and information related to one customer to both identify more accurately the channels, methods and timing with which to communicate effectively and to identify products/services that are in line with the customer needs.
Therefore, the creation of innovative products and services is stimulated not only by accessing financial data but also to other information. Moreover, a wider availability of data on individual customers would extend competition to all sectors to the benefit of the customer; in addition this will trigger additional market opportunities.
Why can’t a bank access the database of a non-financial player while the non-financial player has the opportunity to access account data of the customers? Data access rules should apply cross-industries.
PSD2: a playing level field stimulates competition
Rules shared by all players on data sharing would create a true playing level field by giving the legitimate owners of data full control over the use of their personal data.
In particular, we believe that access to the data collected by the players holding a large amount of individual information – including Google and Facebook – would facilitate the entrepreneurial ecosystem in developing innovative products/services. We strongly believe that a common set of rules on data sharing applied to all players in all industries is a must to ensure effective competition.
The CleverAdvice Team