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European fintech companies write a manifesto concerning PSD2

Over 70 companies from all over the EU states write a manifesto expressing their main concerns regarding the impact of PSD2 in the future of European fintech.

 As the implementation of the revised Payments Services Directive, also known as PSD2, comes closer, companies of all over the European Union outlined a manifesto that approaches some of their main points of worry regarding its impact on the future of European fintech. The fintech companies are skeptical about the Regulatory Technical Standards (RTS), proposed by the European Banking Authority in 2017, not reflecting the principles laid down in PSD2.

The manifesto states that this can undermine technology, such as Direct Access, that has proven work efficiently and in a safe way. It also states that if PST2 gets implemented under the current circumstances, banks will have technological control over fintech companies, this can decrease competition, undermine innovation, and narrow costumer choice.

With that in mind, the manifesto takes on four main points that condense concerns and suggestions for the European Banking Authority to take into account. These are the four main pints:

1) Direct Access is safe

The manifesto stresses that Direct Access, also referred as screen scraping, is a safe and well-established technology that has no record of data fraud and is wildly used by several industries. It also states that PSD2 requires TPPs to combine with Direct Access, this can make that technology fully compliant regarding PSD2.

2) Competition and technology neutrality

The manifesto states that if PSD2 gets implemented with the current state of RTS, banks (ASPSPs) would get absolute control of future innovations, this undermines real and fair competition, and could lead to a series of legal disputes between TPPs and ASPSPs.

 3) Data ownership

It also calls attention regarding data ownership and portability. It mentions that PSD2 RTS restricts users from accessing and knowing their data, which   violates the very nature of PSD2. The manifesto suggests that Secure Authenticated Direct Access can represent a solution.

 4) Secure Authenticated Direct Access

The manifesto suggests that Secure Authenticated Data Access can represent a solution combined with TPP identification, can represent a solution given the fact that it is fully compliant with PSD2.

Finally, the manifesto suggests that EBA should revise and modify the RTS so they reflect principles and nature of PSD2. If not, it can have a detrimental effect on the European financial industry.

To read or download the complete manifesto, click here.

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