From 2018 the EU is giving consumers control of their banking data

In this article, we're going to look at why PSD2 is needed, how it works, what it will mean for consumers, businesses and banks, plus how it will affect the EU and the USA.

+ What is PSD2 and how will it help me? +

PSD2 is the second iteration of an EU banking directive, and its main aim is to protect consumers. Now we all know that banking legislation isn’t usually considered exciting, but PSD2 is arriving in 2018 to shake up the system and give bank customers control of their financial data, and businesses an opportunity to compete in the financial services. With PSD2, you will be able to allow licensed, third-party providers of financial services to access your banking information (with explicit consent), which they can use to analyse your spending and present you with budgeting advice, or guide you towards a cheaper mortgage or higher interest savings account. Third parties will also be able to provide payment services that extend across country borders into the whole of the EU and EEA territory, which means faster verification and fewer fees for consumers.

So if you imagine you want to become a merchant and sell products throughout the EU. Or want to move from one European country to another. You will be able to do both of these immediately. You won’t need a new, foreign bank account as you can permit your financial data to be shared across borders and make payments throughout the EU. And your identity and reputation can be easily verified.