“Together with the GDPR (General Data Protection Regulation), PSD2 is already prompting many businesses to adopt sophisticated technology for customer identification.”
The Regulatory Technical Standards for the European Union’s Payment Services Directive 2 (PSD2) regulations have just been published in the EU Official Journal, and Gemalto is urging affected businesses to see an opportunity in the new requirements.
In a statement, Gemalto Banking & Payment Europe SVP Patrick Kleuters acknowledged the pressure on Europe’s business community, noting that “[t]he clock is ticking and banks must face up to the challenge of meeting all the requirements of PSD2.” But he asserted that Gemalto offers solutions that can meet this challenge, such as “our Mobile Authentication & Biometrics suite to forge smoother and secure digital journeys for customers, or our Assurance Hub to manage the risk assessment just to mention a few.” No one solution will be appropriate to every institution, Kleuters added, but “if they get the strategy right, there is undoubtedly vast potential to reap the benefits of innovative customer offers and closer collaboration with other industry players.”
Together with the GDPR (General Data Protection Regulation), PSD2 is already prompting many businesses to adopt sophisticated technology for customer identification. Broadly speaking, the regulations are aimed at establishing standards for the protection of consumer data and transparency concerning how they do business. To the former end in particular, and also to meet Know Your Customer regulations, many businesses are already embracing solutions like biometric authentication to ensure that the identities of customers doing business through mobile can be confirmed, and that their data can be protected against digital threats.
Now, as Gemalto notes, “the Delegated Act supplementing PSD2 Directive with regards to RTS for strong customer authentication and common and secure standards of communication was published on March 13th”; and while these standards won’t come into effect until September of next year, banks’ API implementations could come under scrutiny as early as next March. Thus the time is now for businesses to start looking into the technological solutions available, if they aren’t already.
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