European citizens and banks still unclear over PSD2 provisions

New surveys show customers and retail bank leaders remain unsure over PSD2 and the opportunities it presents.

Customers remain in the dark

A new study by ING shows that the European Union’s revised Payments Services Directive (PSD2) is still unknown to 82% of the Dutch population. However, after respondents were explained what PSD2 is, almost half (46%) said they would be glad to avail of the new payment services that will be made possible by the directive. The number of respondents under the age of 34 who plan to use the services unlocked by PSD2 was nearly 40% higher than for the population overall.

The survey was carried among 1,500 Dutch citizens by ING as part of its half-yearly Digital Monitor. Without being informed of PSD2 only 12% of respondents said they had a “positive” view of PSD2, compared to 67% who had a “negative” or “very negative” perception. Young people were 50% more likely to have a positive impression. Of concerns regarding PSD2, the two largest worries were privacy (63%) and security (61%).

Following a brief explanation of PSD2, respondents showed enthusiasm for its provisions. When asked which provisions respondents plan to use, the following options came out on top:

29% — consolidate payment accounts

28% — view all balances in one place

26% — use savings apps

25% — use household apps for payments and credit cards

21% — make online purchases without credit cards

These numbers show strong demand for new apps, either proprietary or from third parties, in the areas of payments and savings.

When asked to whom respondents will give access to payment details for new payment services, the following were the most popular responses.

49% — my bank

36% — other banks

30% — insurance companies

28% — small tech companies

28% — mortgage providers

26% — webshops

22% — large tech companies

It is certainly noteworthy that small tech companies were 27% (or 6 percentage points) more trusted than large tech companies for respondents to provide their payment details.

In questions regarding online banking generally, the ING report shows banking on desktop computers continuing to lose ground to mobile alternatives and requesting money, paying family and friends and paying bills as the fastest growing online banking activities.

Banks cite regulatory uncertainty and skills shortage

US retail banking technology provider Fiserv surveyed 400 senior decision-makers in retail banks in the UK, Poland, France, and Australia with the results being published by Business Insider.

Key takeaways from the survey were that most (54%) bankers feel they have insufficient information to become compliant with PSD2 and other open banking requirements by stated deadlines. Alarmingly, most who have already implemented some form of open banking disagree that they have enough information remain compliant.

In addition to a lack of regulatory clarity, banks say they are suffering from a lack of skills to help implement open banking. Among those yet to implement open banking, only 8% say they have enough people and the right skill sets to comply.

Regarding the monetisation opportunities around open banking, 44% of bankers believe it offers monetisation opportunities while 19% believe it doesn’t. On this question British bankers were much more pessimistic than their French and Polish counterparts.

With little more than six months before the key provisions of PSD2 come into effect, it’s clear that question marks remain for both customers and retail bank leaders. With even a small amount of information, customers become enthusiastic about the opportunities unlocked by open banking while incumbent retail banks continue to be lukewarm.