By Dirk Haubrich, Head of Consumer Protection, Financial Innovation and Payments, European Banking Authority.
Dirk, can you please tell the Risk Insights readers a little bit about yourself, your experiences and what your current professional focus is?
I am the Head of Consumer Protection, Financial Innovation and Payments at the EBA, with anti-money laundering, counter-terrorist financing and deposit guarantee schemes added to my responsibilities next month. As part of this remit, my team has developed six Technical Standards and Guidelines that PSD2 had conferred on the EBA. We are also responsible for other EBA work on the fringes of payment services, such as virtual currencies, crowdfunding, big data and others.
At the Payments Forum, you will be giving your insight regarding and update from the EBA, One month after PSD2-day, why do you believe this is currently a key talking point within the industry?
The application date of PSD2 was on 13 January 2018, by which time the EBA had delivered 10 of the 12 mandates under PSD2. The two remaining mandates, which are late due to the fact that no resources were allocated to the EBA to develop the 12 mandates when the PSD2 was published in 2016. In addition, several Member States are late in transposing the PSD2 and the PSD2 text itself foresees a so-called “transitional period” of 18 months. We will provide some clarifications as to what all of this means for payment services providers.
What are your thoughts on initial observations of market developments?
The EBA will be monitoring the payments market in the EU in the months and years to come, in order to be able to assess the extent to which the objectives of the PSD2 and of the EBA’s Technical Standards and Guidelines are materializing, and to take corrective action if needed. I will convey some of the developments we are seeing but would also be keen to hear from the audience what developments they think the EBA should particularly be monitoring.
In your opinion, what are the benefits of introducing the EBA’s Q&A process?
The Q&A process allows external stakeholders to submit questions to the EBA about the interpretation of the PSD2 and the Technical Standards and Guidelines developed by the EBA in support of the PSD2. Before publication, the Q&As go through a formal approval process at the EBA and therefore provide useful additional clarifications to market participants about the Directive, even after the EBA has long finished developing its 12 mandates.
How do you see the payments industry evolving over the next 6-12 months, particularly in relation to the current and upcoming political landscape?
A regulatory authority like the EBA is not well placed to predict market developments, which are best left to market participants to articulate. However, the EBA is keen for the objectives of the PSD2 to be achieved, i.e. enhanced competition and the creation of innovative service offering. However, we also acknowledge that this will not happen overnight and that the paradigm shift that PSD2 has been hailed to bring about will fully materialize only in the mid to long-term.