Tink tells NCA companies “are not ready” for PSD2
Swedish open banking platform, Tink, has written an open letter to the National Competent Authorities (NCAs), calling the national bodies to recognise financial institution’s Second Payments Services Directive (PSD2) technology environments “are not ready”.
With NCAs in the UK, France and Germany showing “flexibility”, Tink is hoping other countries will follow suit, so as to avoid a “cliff-edge” scenario after the final deadline on 14 September. The letter also asks for “stronger industry collaboration” with third party providers (TPPs) to solve the problem.
Tink’s analysis revealed “not a single one” of Europe’s financial institutions who published their PSD2 APIs for the June deadline were in fact compliant. 15% were “operational” as an access interface, but their quality, performance or user experience fell short of being compliant.
“Put simply, if we are forced to migrate to a substandard API environment, many people may find themselves not being able to use the online or mobile-based banking services they have become accustomed to over the past few years,” says Tink’s product VP, Tomas Prochazka.
He adds in the open letter: “Arduous authentication processes, unattractive interfaces, and unreliable service will result in a significant fall in banking customers engaging with new and exciting services. “
The crux of Prochazka’a argument hinges on the fact third parties need continued access to financial data which banks hold, but if regulators allow a poor technology environment to prevail, this access could be compromised.