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axway.com
Regulation is expanding
Around the world, new regulations are in various stages of development,
each with its own nuances and implementation timeline.
Across the Single Euro Payments Area (SEPA), PSD2 regulates
entities that make digital payments on a customer's behalf,
and makes these payments safer with security and liability
rules that improve consumer protections.
A major component of PSD2 is Open Access to Customer
Accounts (XS2A), which requires banks and other institutions
to share payment account information with third parties via
open APIs.
The Competition and Markets Authority (CMA) monitors,
investigates, and enforces compliance with legislation
governing competition and consumer protection across
the UK's nine major banks.
In 2017, Australian Prudential Regulation Authority
(APRA) put in motion plans for an open banking standard that
gives customers greater access and control over
their banking data.
The EU General Data Protection Regulation (GDPR) requires
businesses to protect the personal data and privacy of EU
citizens for transactions that occur within EU member states.
GDPR went into effect in May 2018.
Even where there are currently no formal mandates, both local banks and
multi-national institutions should take note. Open banking regulations are
changing the rules for the globally connected financial services industry.
We believe that as banks
reshape their business model
and legal entity structure,
they will also need to ensure
that they are establishing
the infrastructure, culture
and network necessary to
participate in a rapidly evolving
ecosystem of innovative
competitors and partners that
will allow them to develop and
adopt potentially revolutionary
advances in technology.
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2 EY Global Banking Outlook 2017: Uncertainty is no
excuse for inaction
