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When can we open a current account not only in the bank, or what’s interesting about the Second Payment Services Directive?

authors: Maxim Oleksiyuk, Illia Prokopiev

04 October, 2019 Exclusive

The National Bank of Ukraine has announced further steps on revision of payment market and transfer of funds. The primary goal is to make payment legislation similar to the European one, foremost to the EU Second Payment Services Directive No. 2015/23661 (hereinafter – PSD2). The full list of pending innovations is available at the official website of the National Bank of Ukraine or in the concept2 presented by the National Bank of Ukraine (available by the link). We are interested in one question - what benefits may be granted to (not fintech) business?

General concept

Based on the PSD2 Directive, we can briefly identify the following main areas of development of Ukrainian payment legislation:


  • expanding the list of payment services suppliers (more details below);

  • introduction of open banking system (API banks opened for other financial institutions); as a result: ability to engage third-party account management services and receive consolidated financial information from all accounts;

  • direct relations between a consumer and a service provider, without monopoly of payment systems.


It is expected that this year PSD2 is going to be fully implemented in the EU after all related technical standards are finalized. Although PSD2 does not apply to Ukraine, but its provisions may be binding on Ukrainian financial institutions, operating in the European space or in partnership with European payment companies. As for the Ukrainian legislation, the beginning of the active updating phase is tentatively expected at the end of 2019.

We consider that the key innovation of PSD2 is providing the non-bank financial institutions with a possibility to fully manage current accounts for both individuals and business. It means, that the bank may no longer be required for performance of settlements. But, what benefits will be granted to entrepreneurs? Let's settle this matter.

Characteristics of non-bank financial institutions ...

 

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