PSD2 is addressing the symptoms, not the real underlying problems: trust and data balance

As PSD2 came into effect, there is collective concern around the potential impact of this new payment regulation on banks and consumers. While public discussion is justified, many have already forgotten that these are the symptoms and very little attention is being given to the two main underlying causal problems. Namely that companies and consumers are increasingly becoming aware that they no longer have any control over what happens to their data and how others earn money from it – data that was often voluntarily provided. The other substantial issue is the dangerous speed at which confidence is decreasing around how others manage that data. Safeguarding digital trust currently lags too far behind other technological developments.

If we want to take on these two challenges, we must take action now to regain control of our own data. If we do nothing, we become increasingly dependent on the vagaries of Google, Facebook or other foreign companies.

Sharing data is easy, but controlling already shared data isn’t. We can leave this to traditional institutions to manage or we can try to solve this problem with technology. But personally, I believe in creating an infrastructure based on trust. For example, through agreements around the sharing of data, in which users get full control of their own data, and which should include the user friendly tools to actually exercise this control. A public-private partnership is necessary to achieve this because the problem is too substantial to be solved by any one party.  It should become normal to invest in a digital infrastructure based on trust for data sharing. Just like it makes total sense to all of us to invest in the rail or road systems. After all, we share data every day in the same way that we travel by car or train on a daily basis. 

Shikko Nijland, CEO and managing partner of INNOPAY

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