With the directive slated to be signed into law in January 2018, firms can look to get ahead of major actions or risk falling prey to stealth fintechs.
The Second Payment Services Directive (PSD2) is slated to take effect in January 2018. While financial services customers don’t need to be reminded that there are 117 articles embedded in the new regulations and a host of new requirements for banks to meet, we’ve done the heavy lifting to analyze one of the most important new rules affecting fintech: XS2A, or the “Access to Account” rule.
What is XS2A?
In short, XS2A mandates that banks and payment service providers (PSPs) must provide third-party providers (TPPs) standardized access to customer data and banking infrastructure via application programming interfaces (APIs). The goal of the rule is to create an open central banking platform across Europe.