How much money do you make? What exactly do you do with that money? And where do you spend it all on?
Questions like these can only be answered with an access to your personal bank accounts. With the introduction of the Payment Service Directive 2 – or more commonly known as PSD2 – third parties can now gain access your personal data, but rest assured, only when you give them permission. We’ve listed the most important options for you and the coolest innovators!
In today’s financial market, FinTechs are disrupting the financial services market faster than ever and challenger banks are dislodging traditional global banks. National governments and the EU are major accelerators in this process; they are the cops who control what can and cannot be done. An EU-wide change in financial regulation is PSD2, which will certainly shake things up and open up new opportunities.
What is PSD2?
The PSD2 is – obviously – the spiritual successor of PSD1 and has two important additions. First, the scope has become wider. ItI's no longer limited to only euro transactions and other EU/EEA currencies; transactions in all currencies now fall into the reach of PSD. The second addition has more far-reaching consequences for consumers. Banks are obliged to allow third parties to gain access to their customer’s payment account and transaction details; at least, if the customer gives consent.
It was clear that innovation required a different regulatory view, also to match with existing laws and regulations. PSD2 does exactly this by opening up the market and stimulating the rise of FinTech in Europe.
What can banks do with this?
The introduction of PSD2 alters the competitive landscape for large retail banks. Rather than competing on unfair terms, in light of responsiveness and agility, banks have the opportunity to partner with FinTech and take up an active role in this open banking era. Together, they can build on each other’s strengths to truly enhance user experiences. For banks, FinTech collaborations enable access to agility and timely innovation capabilities. For FinTechs, banks offer the big customer bases, the infrastructure and the data the need.
The new PSD2 regulation aims to offer better consumer protection while both banks and FinTechs have the incentive to keep innovating and provide better and streamlined services in the financial world that will only benefit you!
What’s in it for you?
Personal data collected from your bank account has become the latest talk of the town with its potential to make your life financially much easier. We listed some of the coolest innovations in this year’s Blue Tulip Awards that will take away your pocketbook issues:
Dyme: Dyme can help you save over €700 per year by applying machine learning to your transaction data to recognize unwanted subscriptions. The app will cancel them for you by one click!
Buddy payments: This app helps you to categorize your income and expenses! Also, it helps you save money by budgeting your utilities and tracking which allowances you are entitled to!
Bizcuit: Aimed at business owners, Bizcuit can take on any client, from startup to multinational. Rather than having multiple banking apps, Bizcuit allows you to manage all your finances in just one app.
FINN: Ever thought about your coffee machine buying beans FOR you? By connecting autonomous smart IoT devices, FINN enables interactions between things and people to make these processes safe and secure!
FWDPay: Annoyed by having to ask for refund? Or suffering from filing expense reports? FWDPay makes it possible for users to share debit cards by enabling control and tracking your personal cashflow.
Splitt: Make it easy and avoid awkwardness for you and your friends by splitting bills that are directly connected to users’ bank accounts.
Buddy Application: Who doesn’t want a personal financial advisor in their own pocket? Buddy Application is a financial management application that gives you an overview of your monthly costs and gives advice to improve your spending patterns.