On January 13, 2018, the Payment Service Directive 2 (PSD2) was implemented by all EU Member States, helping to reduce commissions and raise the security standards of financial transactions.
Other effects of the PSD2 concern the growth of competition in the payment services market, which opens to new operators outside the banking sector: PISP (Payment Initiation Service Provider). Let’s take a look to the latest news and to some looming critical issues.
THE GROWTH OF IT INVESTMENTS IN THE GLOBAL FINANCIAL MARKET IS PROMOTED BY PSD2
According to the latest data published by IDC (International Data Corporation), company specialized in market research for the ICT and digital innovation sector, it is estimated a growth of global IT spending in the financial sector, equal to 440 billion dollars in 2018 and about 500 billion dollars in 2021. This with an average annual growth rate of + 5,1% for banks and +4,3% for insurance companies.
The main objectives regard: front-end innovation, the creation of services which can be offered in real time on web platforms and mobile devices, solutions based on Big Data and Analytics. But above all, banks, insurance companies and traditional operators in the financial world, they will have to rethink and redesign IT infrastructures and business models.
Thanks to the impulse given by PSD2, the financial market is destined to evolve towards a model based on Open Banking, an open and participated ecosystem, made possible by the digitization of tools and information, conveyed by huge amounts of data.
To survive in this new environment, it is necessary to digitize solutions and relationships with customers. Those who achieve these goals better and faster will get the best results.
PSD2 AND OPEN BANKING, THE NEW COMPETITIVE SCENARIO THAT LOOMS ON THE HORIZON
Software interoperability, collaboration, sharing information that allow to create new services, these are the elements that most characterize the Open Banking dimension, inaugurated by PSD2. The level of user experience, security and privacy that new and old players will be able to offer to their customers will make the difference.
The demand for innovative services, from customers attracted by the opportunity to purchase, sign contracts and carry out transactions of all kinds with a tap on the smartphone screen, is growing.
BEYOND THE SIMPLE INNOVATION OF FINANCIAL SERVICES WITH DIGITAL TRUST SERVICES
The issue at stake for traditional banks regards the loss of contact with its customers, which, while keeping current accounts active, can access them through the digital payment services provided by third parties.
What InfoCert offers is the possibility of innovating the relationship between bank and customer with digital solutions that not only improve the user experience and the efficiency of the services offered, but also increase the security of transactions. This is the difference between digital service and Digital Trust Service.
An example comes from one of the world’s leading banks, which has created an innovative instant online loans service for businesses and citizens, made possible by a solution based on Digital Trust Services developed by InfoCert.
In this regard, an independent study by Forrester Research has certified the possibility of obtaining a ROI (Return On Iinvestment) of 260% thanks to instant lending services based on InfoCert TOP.