Banking & Payment Federation Ireland (BPFI) is today alerting consumers to prepare for changes in how they access and use their online and mobile banking services with the rollout of PSD2 (the second Payment Services Directive).
PSD2 is a new European law coming into full force on September 14th. The upcoming changes aims to provide better protection for consumers and businesses by enhancing security for online banking and thereby reducing fraud.
The increased security measures, known as ‘Strong Customer Authentication’ will see some changes to how customers access and use their online or mobile banking services. The changes will vary slightly across individual banks but will generally take the form of an additional security step before customers can access their online accounts. Customers will have received information in recent weeks from their respective bank advising them of any actions they may need to take, such as registering or updating their mobile phone number or downloading an updated mobile app. It is vital that customers follow these instructions to avoid any inconvenience when accessing their online and mobile banking services from September 14th.
Speaking at the start of a weeklong awareness campaign being run by BPFI to highlight the upcoming changes, Gill Murphy, Head of Payment Schemes, BPFI said: “
‘It is vital that consumers take the time to carefully read the information provided by their bank in relation to PSD2. This information will outline what changes customers can expect as well as any actions that they may need to take in order to ensure continued access to their online accounts without interruption. It is important to remember that these changes are being introduced across Europe to help counter fraud and provide better protection for consumers and their online accounts.”
In addition to enhancing security, PSD2 will also introduce what is known as Open Banking. This will allow Third Party Providers or TPPs to securely provide consumers with some new services. An example of these services would include paying directly from a bank account as an alternative to a debit or credit card when shopping online. Open Banking will also allow for account information services such as providing consumers and businesses with a single view of their online banking accounts across different institutions. As these new services become available, consumers can be assured that TPPs can only access their accounts with the explicit consent of the account holder. TPPs will be regulated in a similar way to banks.
The current BPFI awareness campaign, which consists of a number of elements including radio advertising and social media outreach, is the second of two campaigns rolled out this summer by BPFI to highlight the upcoming changes.