PA financial services experts, Frode Lervik and Knut Martin Hauge, are quoted in an article in PaymentsCompliance discussing how banks are expected to defend their long-entrenched domination of Norway’s payments landscape, as the country prepares to transfer EU payment reforms into national legislation.
The rules set out in the revised Payment Services Directive (PSD2) will require traditional institutions to open up their infrastructure to third parties – a measure which aims to boost competition in the industry.
According to Frode Lervik, traditional players are putting measures in place to benefit most from opportunities presented by the directive: “If you look at PSD2 from a strategic perspective, the main topics of importance are related to the introduction of new service provider categories – the payment initiation service providers and the account information service providers. The banks won’t give away their PIS or AIS position without a battle and will try to get ahead of the competition.
“Under PSD2, banks are required to provide an interface to any approved third party that wants to connect, so the core banking suppliers will be looking at how they can take a position in providing application programming interfaces close to bank's core systems.”
Knut Martin Hauge believes PSD2 will be a double-edged sword. He explains that, traditionally, banks and payment providers have collaborated. He goes on to say: , “However, several of the areas banks initially cooperated on are now being challenged by PSD2 because they are being urged to take a new competitive stance.”