How to Make Your Data Work for PSD2

The Payment Service Directive (PSD2) aims to make cross-border payments more efficient by enabling third-party payment service providers like Facebook, Google, and Apple Pay. However, many banks are struggling with data security compliance under PSD2. With the shift towards open banking and APIs, banks now face competition from companies offering financial services linked to bank accounts. This change necessitates a reorganization of data management and approach to accommodate new data flows while maintaining user authentication integrity. Financial institutions must develop new infrastructure and adopt technologies that transfer data securely at low costs. Having control over data location is crucial, especially in hybrid cloud architectures. Graph databases can provide a 360-degree view of customer data for pattern analysis and real-time interactions. To accommodate APIs effectively, banks need to understand the new security requirements, budget for infrastructure development, and create new data management processes involving analytics.