A look at PSD2’s tomorrow

The European Commission is reviewing PSD2 with an academic study and there are several changes that could be made in the next iteration of this legislation. While PSD2 has opened up the financial sector, increased competition, and provided better consumer outcomes through choice and user experience, it's not perfect. Key areas for improvement include broadening the scope of PSD2, aligning incentives across the ecosystem, strengthening enforcement powers, and improving supervision and implementation of PSD2/3. Open banking has enabled many societal benefits such as new payment options, increased e-commerce participation, and better financial decisions for the financially underserved.