The opportunities rendered by PSD2 will incentivise banks with strong brand awareness and advanced digital offerings to push the boundaries of open banking, according to Verdict Financial, a financial services research and insight firm.
Increased competition from card issuers and non-bank third-party providers will prompt the steady mid-cap players to fundamentally re-evaluate their strategies. Banks that are competing on price may see a future in collaborating with third parties but, in doing so, will relinquish control over their customer relationships.
Sean Harrison, Retail Banking Analyst at Verdict Financial, considers that banks which have established a presence in the financial technology (fintech) ecosystem through incubators and accelerators will be in a strong position to capitalise on the opportunities brought about by PSD2 and open banking.Banks will also need to take tactical steps to ensure they are compliant with PSD2.
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