Technological innovation -mainly the massive use of Smartphones, the proliferation of social networks and the demand for new services by people and companies— give birth to the new banking regulation in Europe.
In 2008, the European Union created the Single Euro Payments Area with the goal that all member countries have the same payment services.
In 2015, the first European payments directive (PSD) was published. But the entry into force of PSD2, in January 2018, is undoubtedly one of the most important events in the sector, as it marks a before and after in the world of banking and financial services. The directive obliges banks, with the client's consent, to transfer their banking information to third-party companies, to boost competition, transparency, security and the competitiveness of the sector.
It has been 9 months since then, with a clear goal, explains Arturo González Mac Dowell in an interview with the newspaper Cinco Días: "the ultimate goal of this directive is to generate greater competition and greater transparency in financial services for the benefit of the end user".
Benefits for the user that also mean new business opportunities for Fintechs and Banks. Everyone agrees on this point, but only a few have made the first moves to capture them. The time is now.
A clear example is the account aggregation. It offers an added value to the user, since he can see in one place all his positions of all his banks, and, therefore, receive well- founded and personalized recommendations from his financial institution. On the other side, the bank has a complete view of its client and stops sending the known "pre-granted" credit offers to creditworthy clients, to offer what they really need at that moment, such as a renewal of home insurance, better price, or a good pension plan. In essence, the PFM (Personal Financial Management) also allows showing the cash flow, the spending trend, the objectives, the net worth and the management of the debt. All this accompanied by customization that allows users to manage their money.
During this month, four large European banks have made the move announcing with great fanfare solutions around the banking aggregation, hand in hand with Eurobits.
BBVA. One of the biggest banks in Spain has in place a huge marketing campaign, including TV, claiming "your other banks are welcome". Using the BBVA app (the best banking app according to Forrester), clients can now read the information of all their bank accounts, their direct debits, pension plans, cards, latest movements of all bank accounts and more services that will be announced around the aggregation banking. The service is available on iOS and Android from the bank's web or app and is very easy to use.
BBVA customers can easily connect their other bank accounts. Just enter the web, or BBVA App, select the entity and add it using the same keys used in the app or web.
In the following videos, BBVA explains in a didactic way how the account aggregation service can improve the relationship that its clients have with their finances:
OPENBANK. Another important Spanish bank has announced account aggregation with a not so big marketing campaign, but with great acceptance among its customers. Openbank -the Santander Group's online bank- has included the account aggregation service so that the client can have a complete view of their income and expenses without leaving Openbank online banking.
So that the client can manage all their finances in one place, at a glance, and by categories.
Openbank has organized its service under three axes where the client has:
ICA Banken. Under the motto: "Monitor your daily economy", the ICA bank, belonging to the giant ICA Group of Sweden, launches its account aggregation service. In this case, the Swedish bank divides its offer as follows:
In addition, the bank takes a look at your eating habits or your buying preferences.
In summary, it provides the client with valuable information and advice that allows the user to know their day-to-day economy, as well as to know the environmental impact of the food products they consume. It also allows them to have access to a series of offers and discounts through the bank's partners.
LA BANQUE POSTALE. With the aim of reaching more than one million customers by 2025, La Banque Postale, one of the most important banks in France belonging to the La Poste Group, has launched its mobile banking in 2018. The digital offer is focused mainly on daily banking, always looking to make life easier for the end user.
This new mobile banking allows payment and private transfers, tools to manage personal finances and, of course, the account aggregation service. In addition to other services for your fintech partners. The Banque Postale also plans to offer more complex services such as life insurance or mortgage loans in the future.
KBC. In a year after the launch of its mobile banking, the Belgian bank KBC, created in 2005, increased the number of users by 23% in 2018, compared to last year. In June of this year, the bank reported 950,000 users.
In the case of KBC, the account aggregation started at the end of May of this year, and it is expected that thanks to these new services, the uptake of new customers by KBC will continue to increase.
SANTANDER. Since mid-2017, the personal finance app, Money-Plan, allows the aggregation of all your bank accounts thanks to the Eurobits aggregation service. Money-Plan allows you to have a unique vision of your finances, the management of your budget, establish savings criteria, receipts and bills, categorization of movements... everything a PFM should have.
FINTONIC. Without a doubt, this is the Eurobits classic. Its account aggregation service is one of the pioneers in Spain and has allowed it to place itself as one of the leading companies in the fintech sector. It currently has more than half a million users and is in the process of expansion in Latin America: Chile and Mexico. Eurobits has been a Fintonic partner since its launch in 2012.
And that's not all. Currently, Eurobits participates in more projects with financial entities that are in the testing process. Soon we will see great announcements.
Now is the time to take advantage of the opportunities that PSD2 offers.