PSD2: consumer consent is key

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  • Innovation

A European directive called PSD2 will become national law in the course of 2018. The new law opens up the digital payments system for parties other than banks. This means opportunities for entrepreneurs, freedom of choice for consumers and innovation in the market. However, due to the uniquely private nature of payment data, privacy and security are a concern.

It’s important to note that consumers are always required to grant permission before a third party can view their transaction data. The consumer consent is key. At ABN AMRO, clients confirm their permission through online banking. Some other concerns relate to sharing data about the transaction counterparty (meaning the recipient or sender). Under PSD2, banks are obliged to share the counterparty's data as well when the client grants access to their transaction data. No permission from the counterparty is needed. We believe it’s important to inform our clients both about the opportunities as the risks of sharing payment data, according Jos van de Kerkhof, lead product owner Payments & Open Banking ABN AMRO. “We want to assure that our clients can make well-considered decisions.”

Upcoming services

A number of upcoming services can already be identified. These include, for example, digital budgeting tools that give consumers an overview of their current accounts at various banks, new online payment services and an app to effortlessly collect relevant data for a mortgage application. Service providers could be fintechs, webshops and other types of company as well as banks. Eventually, we may see the rise of an app store, so consumers can mix and match financial product packages.

Also good to know

  • Parties wanting to enter the payment data market need to register for a licence with a supervisory body within the EU, such as De Nederlandsche Bank. The supervisor assesses whether the party meets all licence requirements. 

  • Consumer payment data can be accessed for a maximum of 90 days. After that term expires, parties will have to re-request permission for access. 

  • ABN AMRO clients can use their online banking platform to view the parties with access to their current account data, and they can withdraw permission at any time. 

  • Clients have to authorise all transfers themselves.

Further reading (all in Dutch)

Our clients can read more about ABN AMRO and PSD2 on this dedicated page on our website. And the Dutch Payment Association en De Nederlandsche Bank have compiled a comprehensive FAQs on behalf of the sector.