Open Banking and PSD2 Market (Payment Services Directive 2) Impact on Retail Banking Industry

May 29, 2016, 22:00 ET from ReportsnReports

PUNE, India, May 30, 2016 /PRNewswire/ --

The EU's Directive on Payment Services 2 (PSD2) will accelerate the fragmentation of Europe's retail banking industry following the global financial crisis. Market opportunities brought about by PSD2 will energize banks with strong brand awareness and advanced digital offerings into pushing the boundaries of open banking. Increased competition from card issuers and non-bank third-party providers will prompt steady mid-cap players to fundamentally evaluate their strategies. Banks that are competing on price may see a future in collaborating with third parties, but in doing so will relinquish control over their customer relationships. Whichever path is chosen, the opportunity to offer, creates, or co-creates new products and services much more quickly are a positive change for the industry.

Complete report on PSD2 and Open Banking Market spreads across 29 pages providing data tables and figures is available at

Key Findings:  

Banks must ultimately view PSD2 as a business model change, and not simply a compliance issue. PSD2 fundamentally rebalances control over customer data in favor of the consumer. PSD2 has the potential to undermine customer loyalty by distancing banks from their customers. The capping of interchange fees will force card issuers to push aggressively into the personal loans market. Consumers show a strong preference for their bank to provide account aggregation services. Many banks will be in a position to offer additional apps over and above what is required by PSD2. Banks with an established presence in fintech through incubators and accelerators will be in a stronger position to capitalize upon the opportunities brought about by PSD2.

Report offers: Insight into consumer preferences on account aggregation using our 2015 Retail Banking Insight Survey. SWOT Analysis on PSD2 and open banking. Guidance as to how banks can shape their propositions leveraging third-party providers.

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Another related report is Global Retail Banking Market 2016-2020, which forecasts global retail banking market to grow at a CAGR of 6.08% during the period 2016-2020. The report covers the present scenario and the growth prospects of the global retail banking market for 2016-2020. To calculate the market size, the following retail banking products have been taken into consideration: transactional accounts (checking accounts/current accounts), savings accounts, debit cards, automated teller machine (ATM) cards, credit cards, traveler's checks, mortgages, home equity loans, personal loans, and certificates of deposit or term deposits.

The following companies are the key players in the global retail banking market BNP Paribas, Citigroup, HSBC, ICBC, and JPMorgan Chase. Other Prominent Vendors in the market are Bank of America, Barclays, China Construction Bank, Deutsche Bank, Mitsubishi UFJ Financial Group, and Wells Fargo.

Commenting on the report, an analyst said: "An important trend that will propel market growth is the use of big data analytics. Many top retail banks are focusing on expense management to increase the profit margin of their business. This is possible by upgrades and integration of technology. Many retail banks are shifting their focus from stand-alone technology projects to an environment where there is continuous technological improvement. They enter into M&A and joint ventures to reduce the costs and enable smooth integration in data mining and organizational resources. It is important that the top retail banking vendors formulate strategies to attract different customer segments. This could be possible only through multiple distribution and communication channels. Many top retail banking vendors are also making use of the cost-effective solutions in infrastructure, communication, and analytics." Complete report available at

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