ORCA & PSD2 — a match made in heaven?
ORCA Alliance is an European-wide project consisting of an international team of experts, enthusiasts, field professionals and academics with passion for innovation, game-changing ideas and the crypto-economy.
What makes ORCA special?
The European Union PSD2 directive came into action on January 2018. This directive is set to open the European Banking market for competition resulting in lower service fees for customers. It will enable IT-based solutions to challenge outdated financial market. That’s a market worth tens of trillions of euros. Yes, that’s right — trillions. Even tiny fractions at this scale makes up to millions of euros worth of revenue.
What is more, the cryptocurrency and blockchain environment is experiencing a breakthrough that is appealing to various social classes and people from different backgrounds. From groups of responsible individuals who have lost faith in the traditional financial system to Generation Z youngsters deeply entrenched in and fascinated with the opportunities of the digital economy. The public sentiment is shifting and the way how society looks at finance and economy is changing.
The surge of FinTech projects backed by technological innovation, blockchain application, cryptocurrencies and the ease of raising funds through ICOs has spurred thousands of new projects during the last 18 months. Projects which already acquired funding are coming to product development stages and start offering their services to the public at large.
However, already available services whether it be crypto debit cards, decentralized auctions or lending platforms are still dispersed which requires a lot of technical and situational knowledge to use. Current setting makes it hard to reach mainstream adoption as an ordinary consumer is not knowledgeable enough to fully utilize the potential of the crypto-economy.
There is a clear demand in the market for a gateway platform to connect crypto market newcomers with available crypto services. With additional projects entering product development phases the demand is likely to intensify further in the near future. On top of that, the enforcement of PSD2 in Europe is liberating the banking industry to allow more competition through innovation and unbinding of payment services from banking. All of these factors situates ORCA Alliance at the most opportune position and time for the token sale, launching on March 26th.
PSD2 and Open Banking
PSD2 or European Union’s revised Directive on Payment Services follows up on earlier EU efforts and provides “legal foundation for the further development of a better integrated internet market for electronic payments within EU”. The main goal of the directive is to ensure that international payments are as easy, efficient and secure as within a single country.
As of now, only less than 5% of individuals in Europe have ever purchased financial products from another country — mostly due to limited alternatives at hand and lacking knowledge.
Traditionally, people perceive banks as main providers of financial services which is not surprising having in mind strict rules to be obeyed in order to acquire and maintain a banking license in Europe. A lot of effort was exerted to ensure financial stability and consumer protection.
Just until recently, the prevailing rules of the game were that banks and other established lenders were the sole custodians of client information. This resulted in significant barriers of entry to FinTech start-ups.
However, the paradigm has already shifted and the market is adjusting.
PSD2 directive which came into enforcement this January is a definite game-changer. Since now, banks are required by law to provide customer data to third-parties and — after the transitional period ends — give access to customer accounts. Newly enforced directive makes it possible for FinTech startups to operate in the financial market without the necessity of heavy legal compliance and infrastructure.
It is estimated that the European financial system will start to transform rapidly. Service providers will be able to analyse and aggregate consumer spending habits, amalgamate data from various sources and offer specialized solutions through APIs (Application Program Interfaces). With the help of APIs, third-party enterprises will have the ability to initiate payments directly from consumer banking accounts to offer competitive solutions at any point of the payment processing protocol.
These kinds of regulatory developments are often defined as Open Banking, directly stemming from the notion of opening the financial markets.
That’s what ORCA is aiming to take advantage of. The mix of PSD2-initiated liberation of the European financial market with the booming crypto-economy is a clear recipe for success. The time is now and ORCA is in the forefront of innovating an integrated future.
ORCA is undertaking the endeavor to help reshape the traditional concept of banking and is opening the chance for investors and early adopters to participate in the platform by purchasing ORCA tokens issued on the Ethereum blockchain.
ORCA token sale starts on August 6th, visit www.orcaalliance.eu to secure 20% bonus. Only whitelisted people are eligible for bonus during first 48 hours of the tokensale.