Tackling PSD2 Compliance in a Structured, Controlled, and Accelerated Manner
The deadline for banks to comply with the European Union’s revised Directive on Payment Services (PSD2) is rapidly approaching, especially as banks consider the scope of technology and process change they will require to reach PSD2 compliance. There is little time for false starts or missteps along the way. Banks need to tackle PSD2 compliance in a structured, controlled and accelerated manner.
Luckily there are many capabilities available in the market to help banks accelerate getting to a solution and reduce implementation risk. Here are five ideas to consider:
1) Take advantage of pre-defined strategy assessment tools and processes: Accrued competition will predominantly impact client-facing segments of the value chain. Banks will need to adapt their offerings to the new payments landscape. Taking advantage of a ready process for PSD2 strategy definition and readiness assessment will help banks more quickly assess their strategic positioning in the market, the direction they want to take, and which value-added services to offer to keep competitive advantage.
2) Implement a ready solution: Market-ready solutions can jumpstart your compliance program, reduce risk and reduce the cost of compliance dramatically. An “out of the box” compliant solution for PSD2 provides a proven approach for AISP and PSP access to account capabilities and pre-defined, pre-built APIs are ready to use, ensuring fast, future-proof compliance.
3) Connect to an established open innovation ecosystem: Some pre-built solutions incorporate capabilities such as an integrated developer portal and API sandbox to enable third party providers and developers to build innovative solutions on open APIs. Further, consider tapping into an existing innovation ecosystem where large numbers of start-ups, accelerators, incubators, partners and FinTechs are already collaborating.
4) Work with a partner with proven PSD1 and PSD2 expertise: Consultants and systems integrators, such as Capgemini, with deep PSD1 experience will be helpful in expediting PSD2 strategy and execution. Finding a provider with experience managing large-scale API programs will also help get the bank to scaled use of APIs quickly.
5) Leverage a managed service: Consider a PSD2 solution that is offered as a fully managed service via private cloud. Such an approach can accelerate implementation and require far less upfront investment. Pricing, based on the number of APIs and transaction volumes, is managed as an operating expense (OPEX) versus requiring capital outlay.
The deadline for compliance is January, 2018 (and most likely Q3 2018 for EBa RTS). The stakes are high. Taking steps that accelerate the journey while providing a controlled and structured approach should help banks get to the desired destination on time.