Bankathon 2016: What the heck is PSD2?
The third edition of Bankathon will be focused on PSD2 and XS2A. Many people contacted us: What the heck do these abbreviations stand for and what does it mean for me? In short: As a participant at the third Bankathon you are obliged to build your hack based on an existing financial source – such as a bank account, credit card, bitcoin wallet, investment portfolio, and many more. The area of your hack could even be outside of FinTech as long as you include an existing financial source.
And the longer version: PSD2 stands for Payment Services Directive 2 and is a new EU regulatory which will become effective in January 2018 in all European Union countries. One crucial part of PSD2 is the “Access to Account” – or XS2A in short – which represents the opportunity for third parties to access financial sources and do one of these two things:
a) Readout financial data and implement it into a third party service
b) Enable users to initiate bank transfers directly inside a third party application
Thanks to XS2A banks and other financial service providers are obliged to open financial sources and the result will be the rise of new kinds of services. At this stage there are a lot of questions around the impact of XS2A on the whole financial service industry: What services will arise? How can financial data be used? What areas outside of FinTech will benefit? …? At our third Bankathon we want to find answers to these questions! Therefore, we will provide you with access to financial accounts and ask you:
What can you build on top of an existing financial account? – REGISTER NOW!
If you have read the PSD2 text you will know that XS2A is targeting current accounts, however, at our Bankathon we don’t want to focus solely on current accounts but on all financial accounts – in order to show the whole impact of Open Banking on the financial industry.