There is no need to change banks in the future
This week’s Money Good finance 2017 event in Helsinki has brought together hundreds of finance and technology experts. The event will discuss how banks and technology companies can work together to find solutions for the development of payment services and money transactions. The word of the future is therefore cooperation , banks and technology companies will no longer compete with each other for payment dominance. In addition, the ABC Directive , which will enter into force early next year, will further facilitate the development of cooperation between banks and technology companies.
ABC opens new doors
The EU’s new ABC Payment Services Directive will increase cooperation between banks and technology companies and allow consumers to manage their money in a new way. The directive obliges banks to open client account interfaces so that services provided by third parties can be incorporated with the customer’s consent. At its simplest, opening these interfaces means that a customer can see all their accounts in one online bank, even if they are in different banks.
Allows customers to choose
The directive also allows customers to choose which bank to use without having to change banks. This way, for example, your account and mortgage can be in one bank, but you can still use the payment instruments and online bank of another bank. In the future, other payment service providers may offer services in addition to banks, which will certainly increase competition and diversify the service offering.
The Directive will enter into force in Finland in January 2018. The banks will get half-year transition period for implementation of technical Directive, so consumers can benefit from the directive in January 2019.
Visions of the future
In addition to the freedom of choice created by ABC, consumers will play a key role in the future development of payment services. This is also emphasized by Sean Cole, one of the speakers at Money Good finance 2017: “The customer knows what he wants. Better than banks and technology companies. ”According to Rohan, simplicity is the number one customer desire for future payment services. Rohan also reminds that any service development should benefit the customer, either by lowering the price of the service or by improving the user experience.
Good Finance’s Business Director Jessica Brit is also in line with Rohan. He believes that competition will create more options for managing payment transactions, and in the end, consumers will decide which of the new payment methods will remain available. “Consumers choose the easiest and most natural way to use themselves. Orange once demonstrated it on mobile phones, and many other systems since then have experienced either success or failure based on whether it has been easy to use, ”.