PSD2: Next Deadline on the Horizon

21 February 2019

Almost one year after the entry into force of the new EU Payments Directive (PSD2), another important date related to the opening of banking systems to Third Service Providers is approaching.
On the 14th of September, 2019, the deadline for banks to meet the requirements of the Regulatory Technical Standard (RTS) of the European Banking Authority (EBA) expires. After long-lasting discussions between all interested parties, EBA published a final version of the standard in which it outlined the main guidelines for implementing enhanced authentication of identity, supported exceptions and essential obligations of the interfaces for access to accounts (XS2A).

In detail, the standard reflects the requirements for dynamic connection of the operations with the payer, the use of several identification elements, and providing independence of their implementation. It includes the need to identify service providers, the provision of test environments, and the creation of a backup access mechanism as a part of the general interface requirements.

In consideration of the late finalization of the technical standard, banks face the challenge of setting up their systems and responding to new requirements within a short timeframe, including the provision of a test environment no later than March 14, 2019. In addition, EBA also publishes final guidelines for filing information on fraudulent transactions and the conditions for exemption from the use of a back-up access mechanism.
Recognizing the importance of the challenges posed by the new payment directive, WE at CSoft work closely with our customers to meet every aspect of the new regulatory requirements. Our solutions include an application interface for access to accounts (Open Banking Gateway), access consents management, application of identification methods, monitoring of account access processes, and more.