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SIBOS: RISK & REGULATIONS

A relevant role: Legislation like PSD2 will force banks to step up to the digital plate

With PSD2 now in place, Ioana Guiman, Managing Partner at Allevo, based in one of Europe’s most opportunistic fintech markets, believes banks already have the tools to change their model forever. They just need to believe it European banks stand at the crossroads of threat and opportunity. Having fully implemented the technical requirements of the revised Payment Services Directive (PSD2) this month, allowing third-party service providers to integrate with all banks via an application programming interface (API), competition in the marketplace space is wide open. PSD2 has already brought in a host of new participants. By April 2019, the European Banking Authority (EBA) had recorded 891 payment institutions and 53 account information service providers registered under PSD2. But that’s just the start. To thrive in this open banking

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landscape, it’s generally accepted that banks must now act quickly and build a robust digital strategy, while also learning how to work alongside, or partner with, these alternative services providers. That’s proved to be a bit of a mind warp for some established institutions, not to mention a considerable challenge, which is where companies like Allevo have stepped in to help – by providing software solutions for process automation while keeping clients compliant with local and international standards and regulations. Now it’s also seeing an equal level of interest in its services from non-banking providers which want to

integrate with banks over APIs. Ioana Guiman, a managing partner at Allevo, based in Romania, believes that the prescriptive nature of PSD2 and similar open banking regulation is a big step towards solving one of the core issues plaguing financial services – that of interoperability. She doesn’t mince words. “We all know that the banking space is a bit behind in terms of serving the real needs of customers,” says Guiman. “Fintechs have shown us how some of the problems can be solved, and it’s high time that banks were married with the functionality unlocked by fintechs to deliver some of these services to www.fintech.finance

Profile for ADVERTAINMENT MEDIA

Fintech Finance presents: The Fintech Magazine Issue 13  

Fintech Finance presents: The Fintech Magazine Issue 13

Fintech Finance presents: The Fintech Magazine Issue 13  

Fintech Finance presents: The Fintech Magazine Issue 13