DiPP: The future of financial services across Europe: how much digital, how much improved?
14 Rue de la Science
In finance, the ongoing digital transformation holds myriad opportunities for start-ups, long-established banks and insurance companies alike. They all see electronic ID and trust services as key compliance factors for identification and authentication provisions that underpin recent regulatory updates such as PSD2 or AMLD4; they all realize how a proper mix of regulation and technology can help in this respect.
“Know Your Customer (KYC)” requirements on banks and financial service providers in the AMLD4 have become easier to meet since notified eID means are recognized and can be used for this purpose across EU borders.
Likewise, PSD2 allows non-bank third party providers (TPP) to access bank customer’s account data, paving the way to unprecedented innovation in the payment area: open banking APIs enable access to account information, provide confirmation of funds or transmit permission to initiate a payment.
In either case, strong authentication mechanisms are required both from service providers and from customers. Whether for signing a contract, opening a bank account or changing account information or parameters – “remote signing” as introduced by the eIDAS regulation is a legally recognized and yet easy way of expressing consent.
Having held several debates on the finance dimension of the ongoing digital transformation, we think it is time for an update on how these cascading opportunities have been taken advantage of so far.
Head of Unit, Retail Financial Services, DG FISMA, European Commission
Senior Economist, Digital Regulations & Trends, BBVA
Director, Institutional affairs, Europe & Export Financing, French Banking Federation