On June 21st the Bulgarian Fintech Association, together with IRIS Solutions participated in the expert conference “Open Finance: The Backbone of Digital Economy”, organized by the European Digital Finance Association (EDFA) and hosted by the European Parliament. The participants in this meeting, including other Fintech companies and members of EDFA, had to introduce their recommendations on PSD2 and the development potential of Open banking, hence, Open finance in front of the European Commission.
Georgi Penev, director of BFA, and Merdihan Ismailov, Chief Digital and Information Officer at IRIS Solutions presented their project “Open finance for financial education and health”, where they discussed new business models for improving the financial state and literacy of all European citizens. Their proposal suggests that open banking can be applied in two streams – micro (personalized approach for consumer-based purposes), and macro (anonymized approach for evidence-based policy for academia and public sector).
For the whole presentation, please visit this link (02:14:00).
Based on the contributions from all parties involved, the European Commission will prepare a report with all necessary improvements in terms of the PSD2 regulation, which will transform the environment for open finance services.
On June 22nd, the European Banking Authority (EBA) came up with a position in response to the European Commission’s Call for Advice regarding the PSD2 review, which can be found here.
*PSD2 – Revised Payment Services Directive two is an EU legislation and an updated version of PSD1, which was first introduced in 2007, with the idea to provide a single market for payment methods in the European Union. PSD2 forces payment service providers to improve their customer authentication and provide account information to third-party service providers (TPPs). The intention behind PSD2 is to enhance innovation and create competition in the banking sector.