{"id":34,"date":"2017-09-22T20:20:39","date_gmt":"2017-09-22T19:20:39","guid":{"rendered":"https:\/\/psd2meniet.nl\/?p=34"},"modified":"2019-08-02T23:34:31","modified_gmt":"2019-08-02T22:34:31","slug":"psd2-een-europese-strategische-blunder","status":"publish","type":"post","link":"https:\/\/dev.psd2meniet.nl\/en\/psd2-een-europese-strategische-blunder\/","title":{"rendered":"'PSD2, a European strategic blunder'"},"content":{"rendered":"

Bart Jacobs, professor of computer security at Radboud University in Nijmegen, called PSD2 'a strategic blunder'. He wrote a sharp column on 12 September 2017 in the online magazine iBoard.<\/a><\/p>\n\n\n\n

If you'd like to scare the crap out of a banker one of these days\nyou can ask: how far have you got with the\nPSD2? As of mid-January 2018, this Payment Service Directive 2 will be in force\nbe in force. This is a European directive that forces all banks to open up their financial\nsystems to be open to new FinTech service providers at no cost. Is this\nPSD2 such a good idea?<\/p>\n\n\n\n

PSD2 has been conceived in recent years by the Brussels\nDirectorate General of Competition. The directive was born out of anti-bank\nsentiments after the banking crisis of 2008 and from a blind faith in everything\ninnovation and freedom of choice. The FinTech industry struggled to get off\ntake off because banks shield our financial data so well. That\nhad to be broken with a heavy hand! From privacy and protection of customers,\nand their data, is something they don't want at Competition.<\/p>\n\n\n\n

Two new service providers are provided under PSD2, for\nmaking your payments and for providing personal advice on the basis of your\nbased on your own financial data. In the Netherlands we are spoiled with the\niDeal system, but in other European countries, online payments are not regulated as smoothly.\niDeal is a joint effort of the Dutch banks.\nExternal parties could also do so, as soon as their payment orders are incorporated into the existing\nexisting banking system. PSD2 therefore enforces this for\nParties who have received a PSD2 payment license. In our case, the\nDNB will grant these permits.<\/p>\n\n\n\n

The big problems start with account information service providers.\nThese are new parties under PSD2, who, once again after obtaining a licence somewhere in\na license somewhere in Europe, can retrieve account information from banks,\nas soon as a customer gives them permission to do so. The business model of these\nservice providers is based on the processing of personal data. In the\ndigital economy, carefully constructed collections of personal\npersonal data have great value. Under PSD2 they can be claimed from banks free of charge.\nfor free.<\/p>\n\n\n\n

Big Five<\/h4>\n\n\n\n

The Competition Directorate's na\u00efve motive seems to have been\nhas been to help all those little sympathetic FinTech startups at the expense of those nasty\nof those nasty big banks who keep sitting on their golden eggs. The\ndoesn't seem to have occurred to anyone that maybe not only small sympathetic parties\nparties will be applying for a PSD2 license, but also less sympathetic\nAmerican ICT giants, such as the big five: Google, Facebook, Apple, Microsoft\nand Amazon. They will be offered the silverware of European banks on a silver platter.\non a silver platter. The European banks can be sucked dry by these big five\nbe sucked dry free of charge by these big five, while they have to maintain a non-costly\npayment infrastructure. The banking sector hereby loses contact\nwith its own customers and loses control over very sensitive personal\npersonal data. I can't think of a faster way to kill off a sector and put it in the hands\nand put it in the hands of overseas competitors. A strategic\nblunder of the highest order, which could form the basis of the next,\nexclusively European, banking crisis. A crisis that this time was not caused\nby greedy bankers, but by short-sighted policy makers and by politicians\nwho have been fooled by the modern magic word 'innovation'. In\nfive years from now we'll look at each other and ask ourselves: how did we ever let this\nlet this happen?<\/p>\n\n\n\n

Instead of shooting itself in the foot, Europe should at least have demanded reciprocity.\nEurope should at least have demanded reciprocity, whereby the (American)\nICT sector is forced to make its valuable data available to other companies free of charge\ncompanies for free - only with the consent of the person concerned, of course.\ndata subject. Then all kinds of innovative social media startups could get to work with the data from\nbeen able to work with the data of, for example, Facebook or Google. Why are these\nICT companies are allowed to sit on their golden eggs? Was their lobby in Brussels\nperhaps stronger or smarter?<\/p>\n\n\n\n

In addition, it is economically incomprehensible that this\nvaluable financial data of customers must take place free of charge.\nshould take place free of charge.<\/p>\n\n\n\n

We can assume that a company like, say, Google,\nwill apply for a PSD2 license in Europe. With that, Google can set up its own\nfinancial services here and link them to its already comprehensive existing\ndigital infrastructure. Google will ask its users for permission\nGoogle will ask its users for permission to retrieve financial data from the users' banks. The PSD2\nDirective limits the use of that data to financial services.\nBut Google will undoubtedly ask for additional permission to be able to link this data to the data that Google already has on its users.\nGoogle will undoubtedly ask for additional permission to link this data with the data that it already has about these users.\nThink of what Facebook is doing with WhatsApp data, despite fine\npromises. Google then has an ideal informational position of power to\nand manipulate these users and for differential pricing: making the price of a product\nmaking the price of a product dependent on the personal circumstances of a potentially interested\ncircumstances of the potentially interested buyer. This is Google's ideal of\nof 'service'. It does not lower prices.<\/p>\n\n\n\n

Runaway banks<\/h4>\n\n\n\n

Many European banks will probably also,\napply for a PSD2 licence themselves, for example through a subsidiary, so that they can\nfinancial information from their competitors. Are we waiting for such\nwaiting for these hounded 'cowboy' banks that use financial data for all kinds of other\nfor all kinds of other purposes so that customers pay the highest possible\noffers to pay the highest possible margins? Or was it perhaps not\nsuch a crazy idea that banks carefully protect the sensitive financial data of their customers?\ncustomers' sensitive financial data?<\/p>\n\n\n\n

But we have supervisors, right? Yes, but the\nsupervision of PSD2 is fragmented across De Nederlandsche Bank (DNB), the Authority\nPersonal Data Authority (AP), and the Consumer and Market Authority (ACM). These parties have\nnever before worked together on such an extensive job and still have to find each other\nwith the limited resources at their disposal.<\/p>\n\n\n\n

Is all lost? Of course, ill-considered legislation\ncan be repaired, but that takes time. In the meantime, European banks\nbanks may have collapsed. The free nature of the provision can be abolished\ncan be removed. Also, the reciprocity towards the American ICT giants can still be enforced, in the first instance by means of the\ncan still be enforced, in the first instance by means of the so far hardly elaborated requirement for data portability for private individuals.\ndemand for data portability for private individuals in the forthcoming General\nGeneral Data Protection Regulation. However, these are not fundamental solutions.\nfundamental solutions, however.<\/p>\n\n\n\n

The underlying problem is the naive belief of policymakers in the supposed benefits of unbridled freedom of choice for consumers. Increasing freedom of choice adds nothing if everyone unseen always clicks 'yes' just to get on with it. What's more, increasing freedom of choice is counterproductive and actually weakens the position of consumers vis-\u00e0-vis all-powerful ICT giants; they only get to 'agree' to more requests for access, under the guise of free choice. It is time we learned to think in terms of actual protection of citizens.<\/p>\n\n\n\n

Bart Jacobs is Professor of Computer Security at Radboud University in Nijmegen and Chairman of the Privacy by Design Foundation. <\/em><\/p>","protected":false},"excerpt":{"rendered":"

Bart Jacobs, professor of computer security at Radboud University in Nijmegen, called PSD2 \"a strategic blunder\". He wrote a sharp column ... <\/p>\n

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Bart Jacobs, hoogleraar computerbeveiliging aan de Radboud Universiteit in Nijmegen, noemde PSD2 ‘een strategische blunder’. Hij schreef een scherpe column op 12 september 2017 in het online blad iBestuur. Als u het leuk vindt een bankier een dezer dagen de stuipen op het lijf te jagen, dan kunt u vragen: hoe ver staat het bij jullie met de PSD2? Vanaf midden januari 2018 zal deze Payment Service Directive 2 van kracht zijn. Dat is een Europese richtlijn die alle banken ertoe dwingt hun financi\u00eble systemen kosteloos open te stellen voor nieuwe FinTech dienstverleners. Is die PSD2 zo\u2019n goed idee? PSD2…<\/p>\n","category_list_v2":"nieuws<\/a>","author_info_v2":{"name":"Martijn van der Veen","url":"https:\/\/dev.psd2meniet.nl\/en\/author\/martijn\/"},"comments_num_v2":"0 comments","_links":{"self":[{"href":"https:\/\/dev.psd2meniet.nl\/en\/wp-json\/wp\/v2\/posts\/34"}],"collection":[{"href":"https:\/\/dev.psd2meniet.nl\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/dev.psd2meniet.nl\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/dev.psd2meniet.nl\/en\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/dev.psd2meniet.nl\/en\/wp-json\/wp\/v2\/comments?post=34"}],"version-history":[{"count":2,"href":"https:\/\/dev.psd2meniet.nl\/en\/wp-json\/wp\/v2\/posts\/34\/revisions"}],"predecessor-version":[{"id":161,"href":"https:\/\/dev.psd2meniet.nl\/en\/wp-json\/wp\/v2\/posts\/34\/revisions\/161"}],"wp:attachment":[{"href":"https:\/\/dev.psd2meniet.nl\/en\/wp-json\/wp\/v2\/media?parent=34"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/dev.psd2meniet.nl\/en\/wp-json\/wp\/v2\/categories?post=34"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/dev.psd2meniet.nl\/en\/wp-json\/wp\/v2\/tags?post=34"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}