PSD3: Banking’s next chapter

PSD2, introduced in 2015, modernised payment regulations across the European Union, covering both euro and non-euro transactions, as well as domestic and cross-border payments. The initiative undeniably enhanced consumer protection, streamlined processes, lowered costs, enriched user experiences, and expanded personalised service offerings. Notably, open banking was a significant component of PSD2 in the EU. Nevertheless, seven years after its inception, open banking has yet to deliver the promised innovation and growth.

The top-down regulatory approach of open banking initially led consumers to perceive change as forced, causing reluctance and confusion. According to our research, a lack of clarity and planning resulted in poor consumer understanding, with 80% of respondents using open banking tools while 61% claim not to use open banking, and 52% have not even heard of the term. Clearing this misunderstanding is crucial to unlocking the full potential of open banking.