The European Union’s Advanced Payment Services Directive (PSD2) is a “headache for everyone” according to a UK bank spokesman.
At Monday’s London Fintech Conference, Royal Bank of Scotland head of open banking and fintech solutions Alan Lockhart said that a “change of mindset” was needed from banks traditionally unwilling to embrace new thinking.
Nevertheless, he said, the new rules, which come into force in 2018, presented “huge opportunities” for legacy institutions to get on board with ideas from innovative fintech startups.
“One of the huge opportunities that is right on the doorstep is bringing the strengths of fintech startup companies and getting them working with banks - institutions which have been very closed in their thinking,” he said.
“That's not going to happen overnight because it requires a mindset change."
PSD2 has been welcomed in Blockchain circles as a way to sidestep banks on a major scale as EU data sharing requirements take on a wholly new format.
Verification tools utilizing the technology could also stand to make considerable gains as institutions seek to streamline their activities in light of their new administrative obligations.
"The issue today is you've only got one institution you're dealing with, it's the bank,” Lockhart continued, describing PSD2 as a “headache for everyone.”
“And if the bank misuses your information or somehow it was shared inappropriately then you know where to go to get it sorted. But in the future world where you have tens, maybe hundreds of third parties that have legitimate access to customer data.”