Payment Services Directive 2 (PSD2) is a European Union regulatory directive for the banking industry to allow ‘merchants’ for example like Amazon, to retrieve your account data from your bank ONLY with your permission.
It could revolutionise the payments industry, affecting everything from the way we pay online, to what information we see when making a payment, see all of your finances in one place, It could help you budget, find the best deals, and shop for the products and services that suit you through a world of apps and websites.
The providers of this new financial products through apps and website are regulated in the UK by the Financial Conduct Authority (FCA) and European equivalents.
Through the use of technology and using Application Programming Interfaces to move the data, it allows third party providers (TPP) to connect to account providers using standards developed by the UK non-profit body known as Open Banking.
Open Banking forces the UK’s nine biggest banks – HSBC, Barclays, RBS, Santander, Bank of Ireland, Allied Irish Bank, Danske, Lloyds and Nationwide to release their data in a secure, standardised form,
A genuine bank or organisation will never contact you to ask for your login details. If you use a service, then only give out your personal or financial details that you trust and has your consent.