The PSD2 deadline has come, and it’s time to unite
There are now just hours left before the final PSD2 deadline. We’ve all worked tirelessly to make it to 14th September – because we united behind a common goal. Now that the finish line is upon us, we must not lose focus on what we’re all here to achieve – a vastly better experience for millions of European consumers.
Tink’s raison d’etre has been centred on two things in recent years: the work we’ve done to make sure we can offer the quality of service our partners expect from us; and guiding our partners on this tough road and helping them get to 14th September unscathed.
We learned that it’s difficult to turn a piece of legislation into a revolution. While there have been many open questions, the work we’ve done has made us hopeful. Because we’ve seen how everybody – banks, third parties and regulators – all care about making this grand project a success.
And though we feel prepared for the months ahead, we recognise this is just the start.
Connecting a continent
Admittedly, it has been a struggle to get to this point. The whole Tink team has worked relentlessly to offer the deepest and widest coverage on the market, connecting to over 2,500 banks across Europe. We have done everything we can to coach and advise partners to make financial services better.
At times we have talked tough to shed light on issues that we saw needed fixing. We have sent letters, analysed APIs, spent hundreds of hours interpreting the most detailed of clauses. We have seen banks and third parties work equally hard, doing their best while traversing the uncharted and confusing territory that is PSD2.
But as you likely know, there have been major roadblocks along the way. While we are proud to say we have connected with 76% of the bank APIs that were available in production on 14th of June, none of these meet the requirements and obligations to be compliant.
So what does this mean for next week and beyond?
For the banks that haven’t yet released their APIs, Tink will unfortunately not be able to switch to open banking APIs before the deadline. For the banks that did provide production-ready APIs – but are still non-compliant – third party services will either not work at all or be deteriorated by bugs, security issues and complicated user journeys.
This makes the PSD2 requirement for banks to provide a safety net for their APIs all the more critical. If the regulators require them to provide it, we are – in most cases – confident we have the temporary solution in order to maintain good service levels.
If, on the other hand, regulators decide to offer the banks exemptions from providing the safety net – which many markets have chosen to do – it could create a cliff-edge scenario that exposes millions to poor service levels. Nobody wants this to happen.
The last-minute efforts to protect customers
We are encouraged to see so many recognising how important it is to be flexible with these PSD2 requirements. Across Europe, the sentiment of the regulators seems to be shifting. Countries are making last-minute efforts to keep the customer experience intact.
This week, Austria announced it would not grant banks any exemptions. It will instead postpone the PSD2 requirements indefinitely, and allow third parties to continue ‘business as usual’ until the bank APIs are ready.
This means that third parties, in effect, will be able to directly access financial data through the online or mobile banking interface – as they have done before PSD2 – and continue to identify themselves to the bank. The UK, France and Germany may follow suit with similar measures.
We will know more by next week.
In the end, PSD2 was designed to make financial services more delightful for the many. So it’s encouraging that everyone is showing they care about one thing: avoiding a situation in which the customer experience is disrupted or broken.
We can all unite and do more to make the ultimate aim of PSD2 a reality.
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