Understanding PSD2 and GDPR — What the new European regulations mean for the future role of banks

Understanding PSD2 and GDPR - What the new European regulations mean for the future role of banksAs new European regulations covering digital payments and consumer privacy come into force, banks must face the reality of adopting a totally new way of viewing their customer base, says Nordea Bank’s Liisa Kanniainen.

“PSD2 opens the EU payment service market to new competition, enabling non-banks to get standardised access to a customer’s bank account information,” she writes, “while GDPR means customers own their data and are able to decide who they wish to share it with.”

Explaining the key elements of both the new PSD2 and GDPR regulations and the timescale of their implementation, Kanniainen lays out the implications for banks in relation to account services, payment and information services and data protection and management. She emphasises the importance of customer-focused collaboration and outlines the steps being taken by Nordea Bank in preparation for the new payments ecosystem that the regulations are likely to produce.

Focusing on the adoption of best practices, Kanniainen also looks at the options and opportunities made available to banks by this new ecosystem and at the key developments in automated and self-service systems, real-time transactions, multi-factor authentication and seamless service delivery.

Liisa Kanniainen, Nordea BankThis article has been written by Liisa Kanniainen of Nordea Bank and forms part of NFC World’s What’s New in Payments report.

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This item is part of the What's New in Payments Knowledge Centre.