PSD2 is coming: the time to act is now

Recent changes in the UK retail banking sector are about to be followed by radical new regulatory standards being rolled out across Europe in 2019. IBM and Business Partner Prolifics are leading the way with a new solution that can ease the pain of compliance for over 4,000 financial institutions.

The UK’s Open Banking legislation, which came into force in January 2018, requires the UK’s largest banks to open up access to customer data to trusted third parties in order for them to be able to access account data and execute customer transactions. It’s about driving competition in the market while ensuring the highest levels of trust and security for customer data. Soon, customers of all UK banks will be able to access all of their accounts; including current accounts and credit cards via a single portal and compare offerings from across the market in one place.

IBM has helped numerous banks to successfully comply with Open Banking. That work has laid the foundation for IBM Business Partner Prolifics’ solution to enable European financial providers to reach compliance in advance of PSD2 regulations that land in 2019.

PSD2 will affect over 4,000 midmarket providers of financial services across Europe. Like the UK’s Open Banking, these EU financial services providers must open up access to their back-end systems in order to facilitate trusted third-party transactions. PSD2 takes effect in September 2019, but there is a more pressing deadline—by March 2019, every provider must expose the methods by which they will enable third-party interaction and, crucially, have a working testing facility, or sandbox environment where those interactions can be securely tested.

Prolifics has been an IBM Business Partner in the cloud integration space for over 15 years. With operations in the US, India, UK and Germany, it provides cloud implementation and managed services for some of the biggest retailers and financial institutions in the world. Since Open Banking, we have been working with IBM on a tailored version of the sandbox technology to help midsized financial providers capitalise on the same industry-class capabilities.

From Prolifics’ point of view, we are approaching PSD2 in two ways:

  • Relatively small banks who have operations in Europe but are based elsewhere will nevertheless need to comply with PSD2. Prolifics and IBM can take care of that need with a minimum of fuss. We can make them compliant quickly and manage the service for them so they can get on with business. 
  • For European banks, PSD2 can be a competitive differentiator by creating a portal for customers’ complete banking needs and driving innovation. To do that, they need a bleeding edge, yet proven solution which supports customer retention and expansion. Prolifics and IBM offer exactly that.

Already, we are seeing a number of smaller competitors start to offer solutions to small and medium financial providers, but IBM and Prolifics have a head start. The very same solution developed by IBM for Open Banking is being further expanded to meet the needs of European institutions. It is a fully working environment based on technology which is being used, right now, by some of the world’s leading retail banks.

So, if you’re a financial provider and you’re looking to ensure you are compliant with next year’s changes to industry regulations, you have a simple choice. Do you adopt a tried-and-tested solution backed by the world-class expertise of IBM and Prolifics, or do you look elsewhere?

To find out more about PSD2 and how Prolifics and IBM can help clients accelerate compliance, visit the Prolifics PSD2 microsite: