PSD2: Is the banking industry prepared?

Abstract

January 2018 introduced significant change for both the banking and cyber-security industries due to the introduction of the EU's updated Payment Service Directive (PSD). The mandate, known as the PSD2, enables all bank customers, both consumers and businesses, to use third-party providers to manage their finances. Despite mobile operating systems actively discouraging the linking of applications, in order to ensure data protection banks are now obligated to provide application programme interfaces (APIs) to allow third-party providers access to their customers’ accounts. The new PSD2 enables all bank customers to use third-party providers to manage their finances, meaning that banks are now obligated to provide application programme interfaces (APIs) to allow third-party providers access to customers’ accounts. Mark Noctor of Arxan Technologies asks how secure this approach will be, as well as what risks will arise and for whom.