The European directive on bank payments PSD2 (Payment Service Directive 2), issued at the beginning of 2018, has brought this new method of banking services into the life of banks and customers, which is based on the sharing of data between the different actors of the ecosystem. The directive obliged European banks to open their APIs and share client data (with the client’s consent) to fintech companies and companies dealing with financial products and services, paving the way for more competition in the areas that are traditionally dominated by banks, generating a new competitive landscape. Banks enter a field of competition never seen before, and must redefine the way they relate to their customers and the way they compete with each other and with other operators in offering services. A trend espoused by the Fintech world, which has always made its mission to give consumers greater and better access and control to their financial data. Companies like Moneyhub, Yolt and Tink (recently bought by VISA for $ 1.8 billion) allow consumers to share their data with third parties by charging their customers a fee. Their operating model is pretty standard: platforms that allow users to manage their accounts from a single app, make payments, aggregate raw data into categories to make it easier to read and thus improve the control of their financial management. On the other hand, there are the banks that complain of having to compete on an uneven ground with operators who have fewer regulatory and control constraints, and who often struggle to get out of tested but not very dynamic formulas to adapt to a much faster and more fluid reality. . Customers, on the other hand, have also started to approach open banking with some caution. In the United Kingdom, where 33 million active users were expected by 2022 and where large groups such as Loyds and Barclays had launched their dedicated apps from which they could simultaneously manage the accounts of multiple institutions, in January 2021 it had stopped at 3 million of active users of the open banking functions. However, this does not stop the enthusiasts, who hypothesize an open finance landscape, in which not only bank data is accessible, but which also extends sharing to pension funds, deposit accounts and other assets. For consumers, the biggest obstacle seems to be the protection of personal data. According to a 2019 study by Deloitte, in the United States when it comes to open banking, 69% of consumers fear identity theft and 60% are not comfortable about the use that is made of available data. According to industry insiders, such as Dmitry Dolgorukov, co-founder of HES fintech which deals with the administration and management of loans and financing, the key lies in consumer education even before opening data. Teaching the user how to have access to his data and with whom to share it would empower the individual and allow more informed management. Others, such as Nordigen CEO and cofounder Rolands Mester, admit that the technology run-up is significantly faster than regulation, and that it is necessary to slow down and build a stronger regulatory framework to avoid a fall in deregulation under the guise of data accessibility. .
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