Evaluating the Regulatory Approach to Open Banking in Europe: An Empirical Study
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RIS BIB ENDNOTEPublication date: 07.11.2024
Financial Law Review, 2024, Issue 34 (2)/2024,
https://doi.org/10.4467/22996834FLR.24.007.20612Authors
Evaluating the Regulatory Approach to Open Banking in Europe: An Empirical Study
This paper assesses the impact of the regulatory approach to open banking in Europe. The evaluation is based on a review of the revised Payment Services Directive (PSD2), Regulatory Technical Standards (RTS) and the studies of experts from 30 countries as part of the PayTechImpact.EU project. The study aims to examine the effects of the introduction of the PSD2 regulation in the EU. The results of the study reveal that PSD2 is an example of an effective lawmaking process. It focuses on stimulating innovation and creating new value for customers, while concurrently developing the competitiveness of the payment services market. EU regulation has proved to be an effective instrument for creating an open technical infrastructure in the payment services market. Infrastructure development within the European Community regulatory framework has lowered the entry barrier for payment services. Open banking has strengthened consumer security and resulted in fraud reduction. However, the high financial costs incurred in implementing PSD2 has limited its positive impact. The most important issues identified include inconsistent regulatory requirements for non-bank financial companies, the imperfect development of API-based open banking infrastructure, and problems with lost transactions. An analysis of the PSD3, PSR1, and FIDA regulatory proposals indicates that they adequately address the identified outcomes of PSD2 and expectations of financial sector stakeholders.
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Information: Financial Law Review, 2024, Issue 34 (2)/2024,
Article type: Original article
Faculty of Economic Sciences and Management,
Nicolaus Copernicus University in Toruń
Warsaw School of Economics
Poland
Faculty of Law and Administration,
University of Warsaw, Poland
Faculty of Management, Poland,
University of Warsaw, Poland
Published at: 07.11.2024
Received at: 26.11.2024
Accepted at: 06.05.2024
Article status: Open
Licence: CC BY-NC-ND
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