Finance Technology Needs an App Ethos

Financial services software must become easier to use and more useful to customers in the face of the new Revised Payments Services Directive 2 (PSD2) regulation. This market development is the latest step towards open banking and will come into force in January. Allen Jones, managing director at financial software experts Copernicus believes that ease of use and practicality are principles that need to be embraced across all areas of the financial services industry, noting:

“PSD2 is a siren call that could see many well-known brands attracted to financial services; for them and existing industry players of all sizes and in all markets, it should be a call that sees them seeking technology that makes financial services easier to use and understand. It is why our strategy is firmly focused upon developing practical technology that works, rather than complex ‘vapourware’ that can be slow to market and cumbersome.”

From January 13^th, 2018, PSD2 will come into force across Europe. Designed to facilitate open banking, the disruptive impact could radically alter the face of financial services in the years ahead. The key to this change will be a combination of brand-building/leverage, technology and ease of use. For some in asset finance, this change may be off the radar, but as Jones notes;

“Like many market disrupters, the ramifications of PSD2 could be wider ranging than may appear initially. The asset finance sector would be well advised to prepare for the potential of change.”

PSD2 will enable businesses and consumers to use third-party providers to manage their finances. Customers will be able to choose brands they know and trust and who may have deep levels of insightful data such as Facebook or Google to pay their bills, make transfers and analysing spending. At the same time, customer’s money will be placed safely in their current bank account. Going forward today’s banks, financers and brokers will in all likelihood face new levels of competition based upon products, price, security and experience. As Jones concludes;

“The drive to transparency and customer access in finance are changing the trajectory of software development. In today’s app world, if an app works, it will stay on a customer’s mobile device; if not, in a few short swipes it will be gone. Finance technology needs an app ethos to succeed adding to and improving to the quality of customers lives. Smarter, faster, easier and enjoyable technology with great security will be central to future financial services decision making by customers; we aim to facilitate this.”