MoneyLIVE Summit: Tink on PSD3 and API Standardisation

PSD3 is the EU’s upcoming regulation on modernising payments services and financial services data. While PSD2 may have heralded a revolution in open banking, PSD3 is expected to evolve requirements for banks as payments services continue to modernise. 

Last week, we attended MoneyLIVE Summit 2024 at London’s QEII Centre, where we caught up with Jack Spiers, UK&I Banking and Lending Director at Tink, who runs through the evolutions he expects to see come as a result of PSD3, and why the standardisation of APIs is so important today.

Tink: What to expect from PSD3

“PSD3 is more of an evolution than the revolution that PSD2 was,” he says. “As a director working to sell into tier one banks, my involvement in the policy comes in working groups, where we are pushing for certain things to happen when PSD3 comes into force. 

“This includes developments for the SEPA Payment Account Access (SPAA) scheme and other things that will be good from an accounting point of view. So we’re looking forward to some of the table amendments to see how we can make PSD3 better for us all. 

“We’re not expecting any seismic shifts, as we’re still early in the process, but we’re looking forward to the outcomes.”

Why APIs should be standardised

Indeed, Spiers’ involvement at MoneyLIVE Summit extended beyond discussions on impending PSD3 regulations to the importance of standardising APIs, how different markets interact with one another and regulatory variations in different jurisdictions. 

“Importantly, we’re seeing regulatory divergence in the UK and EU, particularly around re-consenting accounts, which will deliver a different user experience in the UK to the EU," he adds. 

“So in the UK you can re-consent with one click, but it's every 90 days. Whereas in the EU you have to re-consent through the open banking flow, go out to your bank, get Strong Customer Authentication (SCA), but that's for 180 days. So you can start to see where there are some differences.”

Tink: Supporting banks with open banking capabilities

For Spiers and Tink, it’s vital to stay abreast of the latest regulatory and market shifts to continue offering compliant open banking services. 

A wholly-owned subsidiary of Visa, Tink is an open banking provider enabling banks, fintechs and merchants to build data-driven financial services, whether for making account-to-account payments, onboarding new customers, making better credit decisions or creating money management tools.

And, with new regulations set to evolve the open banking landscape, Tink is focused on three core areas to keep delivering its best-in-class service. 

“Our three areas of focus include payments, which is where the SEPA Payment Account Access (SPAA) scheme comes in,” adds Spiers. 

“We’re focusing on consumer engagement, to bring in more value-added microservices, and better help our banking partners with any issues they have onboarding new services. 

“Banks continue to face evolving regulatory burdens, so they want new products and services to stay compliant, but don’t necessarily want to onboard new providers to meet these new requirements.

“So, for Tink, it’s about positioning ourselves as the platform that can integrate into a number of these banking providers so we can support banks with any new service they onboard.

“That’s what we do today and will strive to continue doing in the future.”

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