BRUSSELS, 16 May 2017 – The European Banking Federation has asked the European Commission not to dismiss a key recommendation by the European Banking Authority (EBA) on future electronic payments in the European Union. The EBF fears that the privacy of client data, cybersecurity and innovation are put at risk if the Commission does not fully endorse the EBA standards.
PSD2 introduces a general security upgrade for third-party access to a client’s data, bringing an end to practices known as ‘screen-scraping’. Such services, seen as a first-generation direct access technology, let third parties access bank accounts on a client’s behalf by impersonating while using their access credentials. PSD2 calls for the creation of a technology-neutral level-playing field for banks and fintechs, new and old.