PSD2 the second Payment Services Directive has been designed by the European Union to revolutionise the payments industry, changing the way we make payments online and the information we see when making these payments.
The new requirements will need significant investments from the banking industry and although some banks are not happy about this change the customers will be. Members of the EU have only four months left to implement and the industry by all accounts are nowhere near ready. Apparently, more than 60% of Banks will not meet the deadline in September 2019
In trying to meet the deadline, Banks could be now be forced to work with FinTech firms. These tech-savvy companies have the ability to move quickly and have solutions that can assist the larger, bureaucratic and legacy system based banks. The Guidelines offered for Strong Customer Authentication (SCA) are one such area that the Fintechs can help with. The guidelines suggest that 2-factor authentication needs to be followed – Something you own; something you know; something you are. The latter is difficult and is based on behaviour/ biometric data that banks currently do not store on their customers. Biometrics today typically confirm the identity of the user of the phone. On my iPhone as an example, I can have multiple users (family members) accessing my phone through their fingerprint. I have obviously approved this but I certainly do not want these same people accessing my bank account and authorising payments.
WIZZIT has always had a philosophy of working with what is already in place – for example when it comes to verification and authentication, we use the one standard that is globally accepted, trusted and used by every bank in every corner of the world – card and PIN. Why not use what is currently the best practice. In time this may change but right now this is what works and is globally recognised. WIZZIT Authenticator uses these self-same standards and with its PCIDSS compliant solution, it is ready right now to deploy its cost-effective solution within leading banks in a matter of a few weeks – ensuring that Banks meet the stipulated deadline.
The rest of the world is looking to Europe at best practice and Asia as an example is looking at the standards in Europe and has started to consider the principles of PSD2 as a blueprint to the development of their data management systems as well as to how their online banking services are being treated.
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