Post implementation impacts of PSD2 and open banking

Post implementation impacts of PSD2 and open banking

By Matt Glover, Head of Transformation, Unity Trust Bank.

Matt, can you please tell the Risk Insights readers a little bit about yourself, your experiences and what your current professional focus is?

I am currently head of transformation at unity trust bank, a small commercial bank with a social conscious. I have worked within change for the last 10 years for two small banks and my current focus is the management of the Bank’s transformation programme to build capacity and capability across the bank.

At the Technology & Innovation Risk Summit, you are taking part in a panel discussion to discuss ‘Analyzing the post implementation impacts of PSD2 and open banking, and lessons learnt’. What do you think will be the key talking points amongst panelists and why?

For me, the PSD2 regulations are focused around 2 critical areas for the change teams within banks: how to achieve compliance with the requirement around strong customer authentication (SCA) across all channels (APIs, internet banking and telephone banking) in the most customer friendly way and how to maximise the benefit to the bank and customer of third party providers (TPPs) connecting to their banking data.

In your opinion, what are the key lessons learnt post implementation of PSD2?

Although the legislation came into place in January 2018, the majority of banks aren’t captured until October 2019. What we can say so far from those (CMA9) which have been required to comply is there has been a lack of information for consumers about the service and this could be its downfall unless significant time is invested in customer education.

Can you provide a preview of the insight you will provide at the event into how banks and tech providers can get the most of new environment?

I think the key benefit to PSD2 is how we can make it work best for our customers: the best approach IMO is that it should be approached completely from the view point of the customer and then Banks should establish their place within this and work to meet customer’s needs and key challenges: this will be different for different customer segments and organisations.

How do you see the technology risk landscape evolving over the next 6-12 months?

PSD2 has forced a number of banks to consider things around connectivity and information which they haven’t before. The challenges for all relevant banks will be trying to achieve the requirements within the tight timescales and in a way that does not compromise security. The final challenge will be the ongoing monitoring and maintenance of TPPs and the connections: this shouldn’t be underestimated.

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