By Peter van the Schepop, Senior Consultant
Did you know that most innovation and growth in Payments are driven by laws and regulations? It may sound a bit peculiar at first, as making legal adjustments is not exactly associated with innovations fostering success. Still, it’s true: if guided properly, banks can actually benefit from changes imposed by the law. Curious to know how? We’ll give you a topical example.
A new law
You may have heard of the introduction of the PSD2 law, which obliges banks to provide third parties – such as major web shops – with information they’ve requested. Examples include a customer’s account balance and latest transactions. Obviously, the customer must have given permission to the third party to gain insight into such aspects. But if they’ve done so, banks are required to cooperate. To enable this process, API’s have been developed: means that facilitate the exchange of information.
From ‘we must’ to ‘we can’
With API’s, banks can tick off the first box: they comply with the new law. Now let’s take it a step further. What if this development offers opportunities for innovation and growth? What if it can help improve the relationship between a bank and its clients? For example, banks can give their clients real-time insight into their latest transactions and current account balance at any time – rather than delivering a file to them once a day. And if you really want to take things to the next level, why not turn the legally-mandatory innovation around? Be the first to give clients that use accounting software real-time insight into their latest transactions. Not because you have to, but because you can!
The result: grow and flourish
By doing things differently and seeing the bigger picture, you can create growth. A good consultant sees opportunities everywhere. At Proferus, we try to provide solutions that go beyond what plays in the market. Because if a bank rolls out a brand new product, it will distinguish itself from its competitors, and its pioneering initiative will undoubtedly attract new clients. And that is, of course, the ultimate goal.
Interested in Proferus’ cutting-edge solutions and expert consultancy? Don’t hesitate to contact us. We will be happy to discuss your opportunities.