Speakers In the session titled "Data privacy and Consumer Duty - how to improve open banking with API integration," 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 gave presentations.

Despite the audience's doubts, both panelists agreed that PSD3 would be a game changer, but they also mentioned the reasons it wouldn't be because of its primary function of enhancing PSD2's influence. Marais emphasized that open banking and non-bank access across payment methods will be expanded by PSD3, which is significant going forward. According to Gailane, PSD3 is a game changer since it will allow data sharing across businesses, while also filling up the gaps between PSD2 and Open Finance.

"The initial execution dates with PSD3 are looking to be the end of 2025, potentially 2026," Marais stated. We are discussing the next ten years of evolutionary history.Putting ourselves in that historical perspective and considering what this landscape would entail—from open banking to open finance to perhaps even an open data journey—makes me believe that this could be a game-changer.

According to Marais, as younger generations are more conscious of their ownership of their data, there is probably more discussion about data these days. He explained in detail how the story has evolved over the past five to ten years and will do so going forward, with a special emphasis on creative data segmentation techniques.

When asked whether the audience saw Open Finance as a threat, an opportunity, or nothing at all, Marais responded that he saw it as an opportunity, particularly from the standpoint of the customer, as it will give them more transparency over who can view their data and how they can stay informed about how it is being handled and managed.

Gailane concurred that Open Finance presents a chance, saying, "Open Finance is actually the entire operating model, not just for banks but also for fintechs. It's not just about the APIs and information exchange." It includes all upkeep, monitoring assistance, communications, and much more.We have invested a great deal of money in developing this ecosystem management infrastructure, as evidenced by the way fintechs have constructed their entire business models, such as aggregators, based on PSD2. We no longer have to rely on guesswork to communicate and identify one another because we know what to do and how to accomplish things now. We can now investigate what we can give clients at full speed.

She emphasized that as Open Finance involves the entire ecosystem and fosters greater understanding, creativity, and cooperation, it is unquestionably a chance.

Panelists reached a consensus over PSD3 and PSR's significant modifications.According to Marais, PSR will result in less variations in interoperability and standardization, and PSD3 will revolutionize non-bank access to payment schemes and broaden the field of competitors.

How will technological regulation in the future be carried out?

Payments professionals convened for a panel discussion titled "Risk and resilience - can we truly regulate the technology of the future?" to deliberate on regulatory initiatives aimed at controlling risk and cyberthreats. The session was hosted by reporter Debi Bell Hoskings, with presenters Marcus Molleskov, chief risk and compliance officer at Januar, and Krister Billing, market infrastructures and regulatory affairs at SEB.

Billing brought up the overabundance of regulations, and Molleskov concurred that it will be challenging to go through the enormous amount of new regulations that will be introduced in the future years. In response to a question regarding the potential use of AI models to assist with compliance, Billing expressed enthusiasm about the technology's potential but emphasized that its application in conventional banking structures is limited because of worries about data security and privacy, as well as the numerous challenges associated with moving forward in the AI space. Molleskov noted that leveraging AI models and third-party suppliers with AI integrated could improve the effectiveness of data regulation management.

In response to a question about whether regulations help or inhibit innovation, Molleskov said he thought the latter was more common. Billing, who leans more toward the middle, asserts that regulation actually facilitates innovation rather than just encouraging it.

"I find the idea of encouraging invention to be really thought-provoking. The regulator's job is not to promote innovation. If you want to be highly inventive on the inside, you can't just declare that Fridays will be your innovation day! These days, it is not how things are done in banks. More important than anything else is building a solid foundation for unrestricted innovation in the sector.

Everything can be regulated, according to Molleskov, but regulation need to be reactive rather than proactive. This is how biometrics should be viewed.

Billing outlined how the goals of regulators are also represented in the regulations that are pushed through, highlighting the distinctions between the US and Europe:

"Europe and the US have adopted different strategies; for instance, I believe we have lost the race in artificial intelligence (AI) infrastructure. With what we have left, we still have the chance to innovate, but we must acknowledge that the regulators are acting for various reasons. Sometimes the motivations are driving disparate goals that may not be compatible.Several EU-led efforts are an attempt to counter US Big Tech. The DATA Act, the Digital Services Act, and the Market Acts are only a few examples of the wave of digital legislation that has been passed. However, new, horizontal laws also seek to counteract the threat posed by Big Tech. That has different financial dimensions because it is more geopolitical.

When discussing how regulations are implemented in various industries, Molleskov said that cryptocurrency is not subject to the same standards as banking: "I am heavily advocating for stricter regulations and greater accountability on the part of Big Tech regarding fraud, as one of the primary grievances I receive from banks is the possibility of fraud and AML.

Revolut recently released a report stating that, despite banks and other financial institutions being regulated, two-thirds of their fraud detections come from advertisements on Meta platforms.

In his concluding remarks, Billing emphasized the collaborative nature of regulation with authorities and other industries that enhance resilience. Molleskov, on the other hand, expressed optimism regarding the new AML regulations in the upcoming MiCA regulation that will have an impact on the cryptocurrency space.