News & events
Market Insights

PSD2: Sopra Banking anticipates a decrease of up to 20% in the income generated by banking services and payments for certain establishments over the next five years (part 1: vision)

29 11 2016

The Revision of the Payment Services Directive (PSD2) is an update of the European rules introduced by the Directive on Payment Services in 2007. It came into force on 13 January 2016 and its provisions will be applicable on 13 January 2018 after a transition period of two years.

According to Sopra Banking PSD2 forces the market players to embark on a deep and strategic reflection. The new report prepared by the company attempts to analyze and quantify the impact of the PSD2 on daily revenues generated by banking services.

Sopra Banking anticipates a decrease of up to 20% in the income generated by banking services and payments for certain establishments over the next five years The reactions to the PSD2 are extremely varied. On the one hand, a Director of Payments at a Tier 2 stated "Access to the accounts? Impossible ! (In 2016!). Others like BBVA pave the way with a series of APIs inspired by the PSD2 and a free market. To some extent, the diversity of responses reflects a misunderstanding of the Directive and its significance for the European banking sector.

Many institutions focus on the detail of regulation, but they do not see the fundamental issues. Given the importance of future changes, minimal compliance with regulations is indeed a perilous choice. Financial institutions need to review their strategies now so as not to miss the opportunity, perhaps ephemeral, to respond.

Sopra Banking forecasts a decrease of up to 20% in banking income and payments for some institutions over the next five years, especially for small banks that adopt a purely defensive strategy. Proactive and even transformative strategies can offset these risks, but they can mostly generate important opportunities.

Sopra Banking expects new players to take full advantage of the new opportunities offered by the PSD2 as soon as it enters into force, that is to say the beginning of 2018. For all the stakeholders, the time to act is now.

Sopra Banking anticipates a decrease of up to 20% in the income generated by banking services and payments for certain establishments over the next five years

Share on

Discover as well

Digital eXperience Platform (DxP)

When it comes to outrunning the competition, the best experience comes out on top!

Menu Search Contact

Please rotate your device