This was pushed forward with the introduction of the Payment Services Directive 2 (PSD2) in January 2018.
This translates to frictionless collaboration between banks and fintechs, which will subsequently produce more options for users.
Ever used an app to split a dinner bill with friends?
To help you save more each month or invest your savings directly in crypto?
And theres a lot more innovative possibilities this could bring.
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What is PSD2?
This means transactions can happen without the need for credit or debit card details.
A common example is a money tracking app that helps you make sense of where you spend your money.
Its this requirement that aids the transformation towards a more open financial sector, also known as open banking.
However, at the start there where limited standard technological guidelines on how to implement the APIs.
We are still working together to shape this world.
Is regulation really enough to spur innovation?
As with every facet of banking, trust remains central to the service.
Whatsapp, Facebook, email).
So now the focus should be on building an ecosystem of innovation spearheaded by EU based companies.
She was previously an Innovation Strategist at Quirk London.
Aside from writing for TNW, she also blogs on the Huffington Post UK.
