PSD2 and API Banking: Are banks ready for the challenge?

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PSD2 and API Banking: Are banks ready for the challenge?


With the revised Payment Service Directive (PSD2) on the horizon, banking institutions are increasingly eager to take action - though most have yet to make a move - to get a head start on this new regulation and weather the storm of industry disruption that will no doubt ensue.

To consider PSD2 a threat to banks would be the short-sighted view, as the reality is that the opportunities are numerous.  However, with approximately a year to 18 months until this legislation is implemented, many financial establishments may be misled into thinking time is on their side. With the inherent strategic and operational challenges this mandate will bring, they would be ill-advised to delay.  


With the PSD2 legislation will come EU standardization in the following areas:

  • Customer protection & convenience
  • Reduction of entry barriers for card and online payments
  • Aligned payment services across the European Union
  • Greater competition & enhanced innovation
  • New business and revenue opportunities for banks
  • A level playing field for payment service providers, including non-banks


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Vaida Pakulyte is a digital marketing manager at Strands. As an outcome focused online marketer, Vaida is interested in online banking and specializes in creating content that sticks. 




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Topics: FinTech, PSD2, digital banking, psd2 impact on banks

Author: Vaida Pakulyte on Apr 10, 2017

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