There’s no denying it; complying with PSD2 (known as the revised Payment Services Directive) is going to be a pain for a lot of banks and financial organizations. The new European rule is opening the door to a wave of third-party services that can give consumers more authority over their financial data and facilitate merchant transactions. For example, an app could tell you there’s a cheaper mortgage available and kickstart the application process for you. Or a consumer could enable payment for products and services directly from a bank, without going through a third party like PayPal or Visa.
PSD2 seeks to create a unified European marketplace where banks and fintech organizations operate under the same legal frameworks. In this uniform marketplace, compliance costs are reduced, and competition is abundant as consumers grow increasingly informed of their options. APIs offer an opportunity to mobilize and digitize the services consumers have been asking for.
Unsurprisingly, PSD2 has a lot of banks anxious both for their bottom line, and the integrity of their back end. Complying with PSD2 will require many additional resources developing APIs and security protocols to make compliant data available to third parties—and that’s time spent away from regular revenue-generating business operations.
The good news is that Rocket API is available to minimize the inconvenience and maximize the efficiency of complying with the new laws. It enables banks to create robust (and secure) APIs from multiple sources without touching source code, making API creation faster and safer. Maintaining business productivity is easy because you can create APIs from functions in multiple back-end systems, data sources, or web services, then combine them into composite services that mirror even the most complex business workflows. Those composite APIs can be incorporated into experiences that present the necessary data and functionality in a single interface. Rocket API can also guarentee that back-end revisions don’t compromise API functionality ensuring better service levels and fewer surprises. As a result, you can better service your customers by efficiently delivering needed access to third parties—safely and securely.
In 2016, 37% of European consumers said they would change their bank if it did not offer them up-to-date technologies. Rocket API enables developers to build and deploy PSD2-compliant APIs, so they can comply with the new requirements and still be productive in meeting their other requirements.
To learn more about Rocket API, and how it’s perfect for PSD2, visit our website.
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