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What is PSD2 and how will it affect consumers and businesses?


Author: moneycorp bloggers Date: 15th May 2017

 

Here at moneycorp, we understand the value of keeping on top of regulatory changes to help businesses adapt and stay ahead of the game. For our latest whitepaper, part of moneycorp’s FX Outlook Series 2017, we partnered with a leading industry expert, Professor David Hillier, to share insight into what  we can expect from the changing impact of the revised PSD2 on international payments.


Irrespective of the outcome of Brexit negotiations, expect big changes in the way you engage with Financial Service Providers and international currency transactions. Competition for financial services will become more intense and the consumer should expect significant improvements and more choice when carrying out international currency transactions. The era of ‘Open Banking’ will begin with a bang and will definitely be a game-changer for consumers, businesses and FSP’s. 

The main expected regulatory changes are:

✓ More competition
✓ Broader scope
✓ Standardised procedures
✓ Consumer protection
✓ Greater security 

As with any new regulation, there are uncertainties in how PSD2 will be implemented. The readiness of banks and companies to respond to the regulatory change is an issue, only made worse by the Brexit uncertainties still ahead of us. Now is the time to identify the hurdles that may come up to ensure we see a full and a speedy implementation of PSD2.

Without doubt, PSD2 will have a permanent and profound impact on financial service provision in Europe and beyond. The advent of open banking and cardless payment systems will transform the way individuals and businesses manage their financial affairs. Consumers can look forward to improvements in the way they purchase goods, transfer money abroad and exchange currencies by using dedicated and experienced exchange experts such as moneycorp, allowing them to save on bank fees while receiving a personalised service.

Businesses will experience similar improvements but they must also put plans into actions to ensure their business models have adapted to the changes coming their way.

View the full whitepaper to find out about all upcoming regulations and see which questions you should be asking in order to prepare. 

 

 David Hillier is Executive Dean and Professor of Finance at the University of Strathclyde Business School. He is the author of the largest franchise of Finance textbooks outside of the US and has visiting appointments at universities in Italy and Thailand. 

This article does not necessarily represent the views of moneycorp. This article should not be construed as financial advice. moneycorp is the trading name of TTT Moneycorp limited which is authorised by the financial conduct authority for the provision of payment services.

 

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