Question treasuryXL Panel #2 | How is PSD2 being applied in a business context?
12-10-2021| treasuryXL | Cobase |LinkedIn |
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We received the following question from one of our followers…
QUESTION
“As a treasurer, efficient and risk-free handling of payments and reporting are top of mind. In the daily news I read a lot about PSD2, but why don’t I see much of this being applied in a business context?”
ANSWER
We asked for assistance of our highly valued partners to answer the question: Joost Kevelam, Head of Sales and Head of Financial Markets & Risk Solutions at Cobase.
With his expertise he could help out our contact perfectly!
Joost Kevelam responds:
“That is a great question. Today PSD2 is very much geared towards retail users. For corporate usage, we see three key hurdles that need to be cleared.
Firstly, for reporting purposes PSD2 still demands use of bank-specific tokens; either for periodical consent (for reporting) or for each payment. For treasurers that have several banks this is prohibitive.
Secondly, corporate treasurers want to connect in such a way that they can do all their cash management tasks in their ERP and the ERP then connects (unattended) to all their banks. The banks’ PSD2 (or Open Banking) connections often do not support these patterns.”
Lastly PSD2 protocols vary wildly across banks, there is no standard yet. Developments in the right direction are unfolding slowly.
In the meanwhile there are solution providers in the market that offer much of the touted future PSD2 benefits, but with technology that is already easily available today (e.g. swift, host-2-host and other APIs). If you select a provider, please consider whether they have the license and capability to easily migrate you to the PSD2/Open Banking interfaces once they are suitable for corporate usage.
Feel free to contact me if you wish to discuss how these technologies can make your life as a treasurer easier.
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