16 October 2014
Letting the hordes in: third parties to have access to your bank account thanks to PSD2
Background:On 3 April 2014, the European Parliament adopted amendments to the revised Payment Services Directive (PSD II). The revised PSD has many implications but one of the biggest areas of concern centres on mandating access to bank accounts by third party providers (TPP) for the purposes of providing information services or for initiating payments.
The reality of this change to the rules is that an account holding bank will be required to open up access to a customer’s account to a TPP, so that it can tell if there are sufficient funds in the account to make a payment. Furthermore, the TPP will then be allowed to initiate the transaction without the bank being able to stop it.
Everyone agrees that this will need the customer’s permission to do this, but one of the battle grounds will be whether the account holding bank will also have to give permission.
The change to the rules potentially has many other issues and so, to review the raft of challenges account access raises, Michael Salmony from Equens will lead the debate.
Michael Salmony is an executive adviser at Equens, a pan-European payment service provider that processes over €13 trillion per year. He recently managed, at the board of directors/holding level, the post-merger integration of previously national organisations (achieving synergies and efficiency gains of more than 400FTE) to help create Equens as a pan-European player.
Mr. Salmony represents national geographies, banking consortia and international industry sectors within such bodies as the European Commission (e-Invoicing Expert Group), the European Payments Council (EPC) and the European Association of Co-operative Banks (EACB). He is much in demand as a keynote speaker at international conferences, has published extensively in books, newspapers and periodicals, and appears regularly on broadcast media.
Mr. Salmony studied at Cambridge University, obtaining first-class honours in engineering and the Lord George Carter scholarship in computer science before beginning a long management career in the application of innovation to business value to become an internationally-recognised leader on business innovations, especially in the internet and financial services space.