Banks must share client data with third parties
EU directive PSD2, which forces banks to share client data with third parties, such as fintech firms, took effect on Saturday. This will facilitate the provision of payment and other services by fintechs. A client’s consent is always necessary to share the data. The central bank NBS will oversee all new financial tools as they will need NBS certification. The directive reduces the limit for banks’ liability for unauthorized payments from the previous €150 to €50.
The directive bans retailers from charging additional fees for card payments. This, the EU hopes, will push retailers to negotiate better terms with card companies. The directive also calls for the use of strong authentication, for instance via SMS code, in online payments.