Banks Prepare for PSD3 & PSR1

Banks will invest in technology and partnerships to prepare for the implementation of PSD3 and PSR1, aiming to strengthen Open Banking and address increased competition.

Themes

AI-Driven Transformation , Navigating Global Uncertainty

Timeframe

near-term

Subcategories

Corporate Strategy Finance & Regulation Regulation & Compliance Risk Management

Impact areas

Banking European Union Open Banking Payments

Detailed Analysis

The upcoming PSD3 and PSR1 regulations will further shape the European payments landscape. Banks are investing in improving their technical infrastructure, enhancing API quality, and exploring new partnerships to comply with these regulations and compete with non-bank payment providers. "For banks, the PSD3 and PSR1 will strengthen Open Banking, which will facilitate the embedding of financial services in third-party solutions, which in turn will make banking more open but banks less viable."

Context Signals

Growing adoption of Open Banking in Europe. Increased competition from non-bank payment providers. Focus on improving API quality and reducing latency.

Edge

Development of new Open Banking-powered financial products and services. Increased collaboration between banks and fintech companies. Emergence of new business models leveraging PSD3 and PSR1 functionalities.

Click to access the source report