Creating Value with Fast Decisioning in the World of Payment Services Directive 2 (PSD2)

PSD2, or Payment Services Directive 2, has brought about significant changes in the global payment industry. The directive sets the stage for open banking by providing standardized access to customer data and enhancing payment security. However, it also requires banks to open their payment infrastructure and customer data to third parties, which is seen as a disruptor in the financial sector. Open Banking and strong customer authentication are key aspects of PSD2, with the former requiring banks to provide access to third-party payment providers (TPP) via an approved API. The value nexus lies in the ability to transact customer data securely and at a faster rate. A high-performing data layer is crucial for enabling this, as it helps reduce the need for frequent access to data and supports real-time decisioning on risks.