By Justin Griggs, group executive and product strategist at TSYS
PSD2 is a far-reaching directive that has implications for authentication and fraud, but has also accelerated the concept of open banking as well. As part of this digital transformation, the industry will soon be ready for an API model of engagement with a third-party open ecosystem that will nurture fintech development for the benefit of consumers. Regulation was responsible for this push in Europe, but in the United States, it will be the result of money flowing into fintech. With the feverish pace of innovation and investment here, we believe any future regulation may be a result of a consumer-led push.
This also will usher in an era of 'unbundling the customer.' Rather than owning the entire customer relationship, many banks will offer products and services through integrated third parties. And this is precisely why TSYS has opened our own ecosystem to enable it to work with third parties and partners of all types.