A review of PSD2 under banking concept and its impact on the PayTech sector development. A qualitative study in the CEE ecosystem Közgazdaságtudományi

35 OTDK, Közgazdaságtudományi Szekció, Gazdaságpolitika - a gazdaságpolitika elméleti és gyakorlati kérdései Tagozat.

A review of PSD2 under banking concept and its impact on the PayTech sector development. A qualitative study in the CEE ecosystem

Helyezés: 2

Hallgató: Gabriela Ciolacu
Szak: International Business Economics, Képzés típusa: ba, Intézmény: Budapesti Gazdasági Egyetem, Kar: Külkereskedelmi Kar

Témavazető: Dr. Czelleng Ádám - adjunktus, Budapesti Gazdasági Egyetem Külkereskedelmi Kar

Before the 2000s, the banking ecosystem in the EU resembled a 17th century Japanese economy - a proverbial analogy of a protectionist, closed-border economy that had few outside contacts with external rivals. This approach to banking as a whole proved to be redundant and discouraging for innovation, as it impeded disruptors to enter the payment market. Therefore, banking regulators have decided to shift their approach from a conservative Japanese economy to the model of the Dutch East India Company - a company so big that it succeeded to reach 3 continents, thus, bringing creative disruption to Europe.In the light of the innovation and competition policies, an “open banking” concept has been introduced as EU has forced the banks to open up their account information to Third Part Providers, thus contributing to the unbundling of the value chains. Therefore, the Payment Service Directive 2 (PSD2) was introduced in 2016 so as to construct an open banking ecosystem.

At its simplest math form, PSD2 isn’t a comprehensive piece of payment law, but it is a directive that dictates to the National Competent Authorities to force banks to institute an Application Platform Interface and to offer access to their banking data to authenticated TPPs, under customer’s consent. PSD2 lays down rules about various payment institutions and credit instructions, thus mainly coving the main actors in the payment industry.Taking into account the ongoing financial system changes, the study follows to answer to the following question:” How does the open banking concept under PSD2 impact the fate and the business dynamics of the PayTech sector development with a specific focus on CEE region?”.Due to the novelty of the subject, the mixed research would fit the subject better as it combines feedback collection and statistical description of the current situation. 

In the 19th century, the decision to open up the Japanese economy certainly came at a cost as it utterly changed the preserved norms of the previous conservative system. Now, we speak of Japan as a leading economic power. Despite how unwelcoming open banking might seem for several players, PSD2 comes as an alternative solution that forces the orthodox banking infrastructure to open up its doors, by opening up to additional vulnerability, data sharing risks
but also to new business models. However, the question remains if PSD2 will indeed attain its promised targets.