85% of EU consumers are unaware of PSD2 – Mastercard study

A study from Mastercard has revealed 85 per cent of consumers in the EU are not aware of PSD2 or have very little knowledge of it.

The final deadline of PSD2 is in September and with it will come a range of new financial services for consumers to improve their financial experiences. When in act is fully implemented, third parties will be able to access bank account information and trigger payments for consumers, when they have been given explicit consent.

A lack of knowledge on PSD2 is highlighted by the fact on 13 per cent of respondents said they use a mobile app which collates all their current and saving accounts from different banks. This does not deny interest in such services, with 43 per cent stating they would be in favour of a platform which does this.

Going further, 22 per cent stated they would like a service which helps them manage their money and forecast spending patterns based on previous spending records.

The study from Mastercard explored 11 markets in the EU on opinions on the digital banking ecosystem – there were 11,014 samples taken for the report.

More positively than PSD2 knowledge, was the uptake in digital banking, with 84 per cent using theses services regularly. Broken down further, 38 per cent of respondents use digital banks on a weekly basis.

Split up, 63 per cent of those questioned use a mobile banking app from a traditional bank and 20 per cent use a digital-only bank. Adding more fuel to the fire of FinTechs, 54 per cent of the respondents stated they would consider switching to a digital bank in the future.

Interest for digital banking is increasing but so is the desire for security, with 67 per cent of respondents stating it is the most important criteria for the mobile banks to focus on.

Mastercard executive vice president Jason Lane said, “We see that Europeans are very much interested in connected and personalized financial services which make their banking easier and more transparent. The Open Banking initiative will help drive these innovations.

“As trust is a key success factor, banks are in the pole position for providing such solutions to their customers as people trust them more than any other peer groups or institutions when it comes to managing their money.

“With its suite of services, Mastercard fully supports the transformation taking place in the industry as our partners ready themselves to take full advantage of the opportunities offered by Europe’s PSD2 legislation. Our new services will make it easier for banks and third-party providers to work together, enabling open banking to excel.”

Copyright © 2019 FinTech Global

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