The PSD2 Directive and the concept of Open Banking have been a turning point for the European financial market. They have changed the rules of the game and increased the role of financial services regulation: banks are no longer the sole owners of customer data, and users have gained the ability to manage their finances independently.
Today, open APIs for banks, third-party access (TPP) and the development of fintech are creating new ecosystems and shaping the API economy, in which businesses, technology companies and customers benefit from more convenient, transparent and secure financial services.
This is a direction that will determine the future: how we make payments, manage accounts and interact with banks.
What is PSD2
PSD2 (Revised Payment Services Directive) is an updated European Union directive on payment services that came into force in 2018. It replaced the first version of the directive (PSD 2007) and became the foundation for the creation of a single digital financial space in the EU.
Its main goal is to make the payment services market more open, competitive, and secure for users.
What PSD2 changes:
- Open Banking. Banks are required to provide third-party companies (TPPs) with access to customer accounts (XS2A) — but only with the user's consent. This stimulates the development of fintech services and new digital products.
- Strong customer authentication (SCA). Online payments now require additional identity verification (e.g. via a code in an app or biometrics), which significantly increases security.
- Uniform rules for all. PSD2 establishes a common legal framework for banks and payment service providers throughout the European Union.
- Consumer protection. Customers gain more control over their financial data and confidence in the security of transactions.
Thus, the PSD2 directive has become a step towards an open, innovative and transparent financial ecosystem, where customers decide how and with whom to share their data (or not to share it), and competition stimulates the development of better financial services.
What is Open Banking
Open Banking is a modern concept in the financial sector that allows customers to decide for themselves who to give access to their banking data and for what purpose. User consent is a prerequisite: without it, no bank or third-party service can obtain information about accounts or transactions.
Technically, data exchange takes place through special APIs (Application Programming Interfaces) — standardised software interfaces that ensure secure interaction between banks and third-party payment service providers. This allows the creation of new financial services — from mobile applications for managing multiple accounts to personalised advice systems or fast online payments.
The basic principles of Open Banking:
- Security. All transactions are carried out through secure APIs that comply with international standards and make unauthorised access impossible.
- Voluntary consent. Users decide for themselves who to grant permission to process their data and for how long.
- Transparency and control. At any time, the customer can revoke permission or change access settings.
For example, you can allow a fintech application to view balances at different banks and manage all accounts in a single interface. Another service can, with your consent, initiate payments directly from your bank account — without a card or intermediaries.
Implementation of Open Banking in Ukraine
Open Banking is just beginning to be implemented in Ukraine. Some banks are already testing APIs for interaction with fintech companies, but the system is not yet fully operational. The legal and technical basis for open banking is laid down in the Law of Ukraine "On Payment Services" and NBU Resolution No. 80, which came into force on 1 August 2025. It adapts Ukrainian legislation to PSD2 standards and establishes rules for secure data exchange via API, user authentication, encryption, and transaction monitoring.
The resolution defines the roles of the system participants: banks provide access to accounts via API, control payment security and block suspicious activities, while fintech companies can obtain data on user accounts or initiate payments, but without access to funds. All transactions take place only with the user's consent, and participants are required to ensure security, record transactions and keep documentation for at least five years.
How PSD2 and Open Banking work in practice
In practice, PSD2 and Open Banking are changing the approach to interaction between banks, customers and fintech companies. Now users decide for themselves who to allow access to their financial data and for what purposes. This is achieved through standardised APIs that allow different systems to "communicate" with each other without compromising security.
1. Providing access via API
Banks are required to create open APIs that allow third parties (Third Party Providers, TPPs) — such as fintech companies or payment services — to connect to banking systems and receive account information services (AIS).
These interfaces allow only the information agreed upon by the customer to be obtained: balance, transaction history, or the ability to initiate a payment. The bank itself remains the source of the data and controls its transmission through a secure channel.
2. Customer consent is a key condition
No access is granted automatically. The customer must confirm that they allow a specific service to work with their data and can revoke this consent at any time.
For example, you can allow a financial application to see only balance information — without the right to make payments.
3. Use of data by third parties
Once permission is granted, third-party services use the API to create convenient financial products. For example:
- Financial aggregators: applications that show all your accounts and transactions from different banks in a single interface.
- Payment initiation services (PIS): the ability to pay for goods online without a bank card — directly from your account.
- Financial planning tools: services that analyse expenses, generate analytics, and offer personalised advice.
4. Security and customer authentication (SCA)
To ensure data protection, PSD2 has introduced the Strong Customer Authentication (SCA) requirement — multi-factor identity verification when logging in or making a payment (e.g., password + SMS or biometrics).
Information is transmitted only through encrypted channels, and all actions are recorded for auditing purposes.
Bank and fintech service monitoring systems operate in real time, detecting fraud attempts and blocking suspicious transactions.
Result:
PSD2 and Open Banking create a transparent and secure financial ecosystem with the customer at its centre. Now it is the customer who controls their data, and the bank becomes part of a partnership system open to innovation and new business models.
What are the benefits of Open Banking?
Open banking is not just a technical change, but a strategic step that changes the approach to interaction between banks, businesses and customers. It creates a new ecosystem where all parties win — thanks to transparency, innovation and flexibility.
For banks
Open Banking opens up new opportunities for monetising banking data and partnerships:
- Monetisation through collaboration with fintech companies. Banks can provide their APIs as a commercial service or create joint products with fintechs — from new payment solutions to personalised credit offers.
- Faster innovation. Instead of developing everything in-house, financial institutions can integrate ready-made fintech solutions and thus bring new services to market several times faster.
- Improved customer experience. By leveraging new opportunities, banks can better understand customer behaviour and offer them more relevant, convenient and personalised financial products.
For businesses
Open Banking creates new channels for digital services and simplifies financial transactions:
- Access to modern fintech solutions. Companies can integrate banking APIs into their applications, connect payment services, automatic customer verification or expense analytics without the intermediary of a bank.
- Convenient online payments. Businesses can accept payments directly from customers' bank accounts without card fees — faster, cheaper, and safer.
- The ability to create new business models. For example, cash flow management services, accounting systems with direct access to accounts, or financial planning platforms for small businesses.
For customers
The main advantage of Open Banking is that customers gain control over their finances and access to innovative services:
- Greater choice and personalisation. People can choose from a variety of financial services and receive offers that meet their real needs.
- Security through multi-factor authentication (SCA). PSD2 ensures that any access to an account or transaction is confirmed by two or more levels of verification.
- Transparency and control. Customers can see who is using their data and what data is being used, can revoke access at any time, and can be confident that their financial information remains under their control.
In this way, Open Banking creates an environment in which banks become platforms for innovation, businesses gain tools for development, and customers gain freedom of choice and maximum convenience in managing their finances.
Challenges and risks
The introduction of open banking opens up great opportunities, but at the same time creates certain challenges for banks, businesses and users.
1. Data security
Although PSD2 provides for SCA to protect transactions and access to accounts, the risks of leakage or unauthorised use of personal information still exist:
- Malicious actors may attempt to gain access to APIs or third-party services.
- Constant security system updates and real-time transaction monitoring are necessary to minimise threats.
2. User trust
Transparency and customer control are important for the success of Open Banking:
- Users must clearly understand what their data is, who uses it, and how it is used.
- It is necessary to ensure that access can be revoked at any time.
- Lack of trust can deter customers from using new financial services, even if they are secure.
3. Technical challenges
Not all banks are ready for high-quality integration with open APIs:
- Old or outdated IT systems can complicate the connection of third-party services.
- The lack of standardisation between banks slows down the development of universal fintech solutions.
- Therefore, the effective launch of Open Banking requires significant investment in infrastructure modernisation and staff training.
Although Open Banking opens up new opportunities for innovation, secure integration and improved customer experience in finance, its success depends on reliable data protection, transparency for users and the readiness of banks for technological change.
The future of PSD2 and Open Banking
Open Banking and PSD2 are ushering in a new era of financial technology, gradually transforming banks, businesses and customers themselves. The next step will be the transition to Open Finance, when access via API will cover not only bank accounts, but also insurance, investments, loans and pension savings, but this is only expected in the more distant future. The main task now is to gradually adapt to Open Banking: banks, fintech companies and users are getting used to new standards of secure data exchange, working through APIs and customer control over their finances. This creates the basis for future comprehensive financial services, where all services can be managed in a single digital environment.
Key trends for the future
- Partner financial ecosystems: banks, fintech companies and other service providers will work together to create integrated services for customers.
- Integration of artificial intelligence: analytics, personalisation of services, forecasting of financial needs and process automation will become standard in fintech solutions.
- The growing role of IT companies: technology providers are becoming key players that support open APIs, ensure security and rapid integration of new services, and offer ready-to-implement platforms for open banking.
The state and prospects of open banking in Ukraine
As mentioned above, the process of implementing the concept of open banking in Ukraine is in its early stages, but it is gradually gaining momentum. Banks and fintech companies are testing the first integrations via API, and the National Bank is forming a regulatory framework that ensures transparent and secure interaction between all participants. It is expected that in the coming years, the system will be fully operational, opening up opportunities for the creation of new financial services and business models. In the long term, the introduction of uniform standards and harmonisation with European legislation will allow the formation of a full-fledged ecosystem of open financial services integrated with the EU market. This will promote competition, innovation, and greater consumer confidence in financial technologies.
Impact on the financial ecosystem
The development of Open Banking increases competition in the financial sector, making the market more dynamic, transparent and customer-oriented. Banks are gradually moving from being individual institutions to platforms that bring together various financial services into a single digital ecosystem. This allows customers to choose the most convenient and profitable solutions for themselves, and companies to innovate more quickly.
In the future, Open Banking will become the basis for the development of Open Finance — a new model where not only bank accounts but also insurance, investments, loans and pension savings are combined through APIs. This approach will contribute to the formation of a more flexible, integrated and innovative financial system that meets the modern needs of businesses and consumers.
Conclusion
PSD2 and Open Banking are creating a new financial market architecture where payment security comes first. It's not just about reliable data protection and regulation, but also about financial innovation that makes life easier for customers and opens up new opportunities for businesses.
The European experience is gradually becoming a guide for Ukraine: thanks to Open Banking, we will get modern services, transparent finances and more control over our money.
FAQ
How does PSD2 differ from Open Banking?
PSD2 is an EU directive that sets rules. Open Banking is the practical implementation of these rules through APIs.
How does Open Banking affect Ukrainian banks?
It encourages banks to open APIs, integrate fintech solutions, and compete for the best service.
Is it safe to use Open Banking-based services?
Yes, because multi-factor authentication and strict regulation of data access are used.
What examples of Open Banking are already working around the world?
In the United Kingdom, the concept of Open Banking has been implemented since 2017. Over 15 million users use services based on open banking.
Need advice on Open Banking? Write to us at marketing@integrity.com.ua, and our experts will help you understand the details.
