At NextGen Nordics 2024 in Stockholm, moderator Debi Bell Hoskings led an engaging panel discussion focused on new regulations regarding data and privacy, encouraging audience participation.
The session, titled “Data Privacy and Consumer Duty – How to Improve Open Banking with API Integration,” featured Agnija Gailane, product manager for open banking platforms at Nordea, and Piers Marais, global head of product for embedded cross-border solutions at Visa. Both speakers acknowledged the potential of PSD3 to significantly transform the financial landscape, although they recognized differing opinions from the audience. While some view PSD3 as a mere enhancement of PSD2, Marais highlighted its importance in broadening access to non-bank payment systems. Gailane emphasized that PSD3 will bridge the gaps between PSD2 and Open Finance, enabling data sharing among various entities.
Marais noted that initial implementation dates for PSD3 are projected for late 2025 or early 2026, framing it as a pivotal point in the evolution toward a more inclusive open finance landscape. He observed that younger generations show a growing awareness of their data ownership, indicating a shift in the narrative surrounding data usage over the past decade.
During the session, the audience was asked whether they perceive Open Finance as an opportunity, a threat, or neither. Marais expressed optimism, particularly from a consumer perspective, as it enhances transparency over data access and management. Gailane concurred, stating, “Open Finance encompasses not just APIs and information exchange but the entire operating model for banks and fintechs, leading to an ecosystem for innovation and collaboration.”
The discussion also touched on the anticipated impacts of PSD3 and PSR, with Marais noting that PSR will promote interoperability and standardization, while PSD3 will broaden access for non-banks in payment schemes and enhance competitive dynamics.
In another panel session titled “Risk and Resilience – Can We Truly Regulate the Technology of the Future?,” payments experts convened to address regulatory measures aimed at managing risks and cyber threats. Billing highlighted the impending wave of regulations that will challenge stakeholders to navigate compliance effectively. Although he expressed enthusiasm for the potential of AI in aiding compliance, he also cautioned about its limitations within traditional banking frameworks due to privacy and security issues. Molleskov argued that AI could be harnessed more efficiently through third-party providers with built-in capabilities.
When discussing whether regulation fosters or hinders innovation, Molleskov leaned toward the belief that regulation tends to obstruct innovation, while Billing posited a more nuanced view; he suggested that regulation might create conditions conducive to innovation rather than directly fostering it.
Billing also reflected on the differing regulatory landscapes between Europe and the US, particularly in the context of AI, noting how each region’s regulatory priorities can drive conflicting objectives. He advocated for a more stringent regulatory framework for crypto platforms to mitigate fraud risks, particularly those associated with Big Tech.
In their concluding remarks, both speakers acknowledged the benefits of collaborative regulation, which can enhance resilience in the industry, and expressed optimism about forthcoming AML regulations in the MiCA framework that are expected to positively impact the crypto sector.