It’s time to think different about your Contracting and Financial workflow...

In our blogpost we highlight the key points of the report published on, for the special occasion of PSD2’s second birthday, taking place on January 13, raising the question, whether PSD2 is a success.

The positive

Challenger banks have taken advantage of open banking, making Europe the leading region for such non-traditional financial institutions. Germany’s N26, for example, now has 2.3 million users– a 3x increase from the year prior.

Legacy systems in particular are costly to modernize, which is necessary when integrating with open APIs –

Todd Clyde, CEO of laid out benefits for businesses and banks. – Businesses will benefit the most from a dramatic reduction in the cost of payments and will therefore lead the adoption of open payments – he said.

– Banks will benefit as they move from compliance to commercializing open banking and bring new API-enabled propositions to market which allow them to compete with big tech and fintechs in the new financial layer and re-intermediate themselves with customers.

Missed the mark

The progress for compliance with PSD2 has been slow, primarily because of the cost to adapt. Last March, Tink interviewed 442 European banks across 10 markets and found that 41% of the banks were not in compliance with PSD2. Specifically, these banks failed to provide third parties a sandbox to test their APIs.

Additionally, end consumers are still not well educated on the purpose or benefits of PSD2. One of the aims of open banking is to place consumers in control of their own data. However, Tink reported that, even among senior financial services executives, 20% were “not very familiar” with PSD2.

Where do we go from here?

In an interview with Adam Farkas, executive director of the European Banking Authority, NS Banking reported that the new regulations will help the European payments market scale more easily and faster than in other regions and that industry participants will compete on a more global scale.


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