The European Parliament saw a presentation of the final RTS draft version of the PSD2 initiated by the European Banking Authority.
Several Europe-based Fintech companies are of the opinion that the final draft does not adhere to the ‘equal playing field principle’, which the originators of the bill had propounded in the beginning.
Sixty five of such Fintech companies from Europe finally decided to from an association and developed a manifesto that urges the European Parliament to ensure that the RTS be technically neutral and conform to the originally agreed objectives and text of the final PSD2 agreement.
A group of other Fintech companies are also pondering their stand to join the association.
The reason for this strong objection to the adoption of the submitted draft is that if some of the proposed standards within the agreement are implemented, especially in the observations of how Fintech companies must communicate with the banks in Europe on behalf of the consumers, the members of the association feel that they will have to bear an adverse impact on their performance.
The proposals will jeopardise the consumer control over their own financial data as enshrined in the GDPR, and will end up with a negative impact on the competition within the European payments and financial services market.
At the end of day, such moves shall hamper the urge for innovations within the industry and will impact negatively the growth trajectory in the market.
There is also the risks that the proposed regulatory standards would mean Fintech companies technologically submitting themselves to banks, thus reducing them to becoming a mere watchdog or ‘a gatekeeper’, in the Fintech sector.
The association demands a firm stand from the European Parliament on the issue of PSD2 implementation. It urged the Parliament to oversee that the Regulatory Technical Standards are amended so that the banking consumers in Europe can be delivered a real choice in their payment and financial information services.
Such a move will only allow for continued growth and innovation in the e-commerce sector and will aim to maintain Europe as the centre nof global excellence in Fintech knowhow.