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Evaluating the Regulatory Approach to Open Banking in Europe: An Empirical Study

Publication date: 07.11.2024

Financial Law Review, 2024, Issue 34 (2)/2024,

https://doi.org/10.4467/22996834FLR.24.007.20612

Authors

,
Michał Polasik
Faculty of Economic Sciences and Management, Nicolaus Copernicus University in Toruń
https://orcid.org/0000-0002-7790-4839 Orcid
All publications →
,
Agnieszka Butor-Keler
Warsaw School of Economics
, Poland
https://orcid.org/0000-0002-2761-3144 Orcid
Contact with author
All publications →
,
Paweł Widawski
Faculty of Law and Administration, University of Warsaw, Poland
https://orcid.org/0000-0003-0457-360X Orcid
Contact with author
All publications →
Grzegorz Keler
Faculty of Management, Poland, University of Warsaw, Poland
https://orcid.org/0000-0003-2655-4135 Orcid
Contact with author
All publications →

Titles

Evaluating the Regulatory Approach to Open Banking in Europe: An Empirical Study

Abstract

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.

References

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Information

Information: Financial Law Review, 2024, Issue 34 (2)/2024,

Article type: Original article

Authors

https://orcid.org/0000-0002-7790-4839

Michał Polasik
Faculty of Economic Sciences and Management, Nicolaus Copernicus University in Toruń
https://orcid.org/0000-0002-7790-4839 Orcid
All publications →

Faculty of Economic Sciences and Management, Nicolaus Copernicus University in Toruń

https://orcid.org/0000-0002-2761-3144

Agnieszka Butor-Keler
Warsaw School of Economics
, Poland
https://orcid.org/0000-0002-2761-3144 Orcid
Contact with author
All publications →

Warsaw School of Economics
Poland

https://orcid.org/0000-0003-0457-360X

Paweł Widawski
Faculty of Law and Administration, University of Warsaw, Poland
https://orcid.org/0000-0003-0457-360X Orcid
Contact with author
All publications →

Faculty of Law and Administration, University of Warsaw, Poland

https://orcid.org/0000-0003-2655-4135

Grzegorz Keler
Faculty of Management, Poland, University of Warsaw, Poland
https://orcid.org/0000-0003-2655-4135 Orcid
Contact with author
All publications →

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  licence icon

Article financing:

This research was supported by the National Science Centre of Poland under grant no. 2017/26/E/HS4/00858 (PayTechImpact.EU). We would like to thank Dominik Sadłakowski and Natalia Tetkowska, members of the Centre for Digital Economy and Finance of the Nicolaus Copernicus University in Torun, for their work in the PayTechImpact.EU research project.

Percentage share of authors:

Michał Polasik (Author) - 25%
Agnieszka Butor-Keler (Author) - 25%
Paweł Widawski (Author) - 25%
Grzegorz Keler (Author) - 25%

Information about author:

Michał Polasik, Associate professor at the Faculty of Economic Sciences and Management at the Nicolaus Copernicus University in Torun, Poland and director of the Centre for Digital Economy and Finance NCU. He is the author of over a hundred academic publications on retail payments and digital finance. He is also a team member of the evaluation project for the European Commission under the “Study on the application and impact of Directive (EU) 2015/2366 on Payment Services (PSD2)”. Contact email: Michal.Polasik@umk.pl, https://orcid.org/0000-0002-7790-4839.

Agnieszka Butor-Keler, Assistant professor at the Warsaw School of Economics and author of several publications related to the development of FinTech financial innovations. She specialises in the area of new technologies in the financial services market, fraud prevention and the development of cryptocurrencies. Contact email: abutor@sgh.waw.pl, https://orcid.org/0000-0002-2761-3144    

Paweł Widawski, Assistant professor at the University of Warsaw, Faculty of Law and Administration, Head of Centre for Regulation of Financial Services and Technologies, Poland. Specialising in financial market law, in particular payment services and legal aspects of digital finance. Contact email: p.widawski@wpia.uw.edu.pl, https://orcid.org/0000-0003-0457-360X

Grzegorz Keler, Assistant professor at the University of Warsaw, Faculty of Management, Department of Business Law, Doctor of law and advocate. Specialising in financial law, in particular tax law and regulations of the financial market. Contact email: gkeler@wz.uw.edu.pl, https://orcid.org/0000-0003-2655-4135

Classification number:

JEL Classification System:

Monetary Systems, Standards, Regimes, Government and the Monetary System, Payment Systems (E42)
Banks | Depository Institutions | Micro Finance Institutions | Mortgages (G21)
Non-bank Financial Institutions, Financial Instruments, Institutional Investors (G23)
Regulated Industries and Administrative Law (K23)
Cyber Law (K24)
Technological Change: Choices and Consequences; Diffusion Processes (O33)

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Publication languages:

English