Luxembourg’s parliament has implemented new EU rules that forces banks to share customer data, if the client agrees, with other financial firms via software called an API, in a bid to increase competition in the sector. Pictured: Students participate in a API hackathon at New York University in March 2012. Photo credit: hackNY.org on Flickr
Luxembourg’s parliament has adopted new EU rules that could boost the European fintech sector.
PSD2 requires banks, with their clients' approval, to open up customer data to third party companies. That’s expected to increase competition, as other firms--big and small--will be able to provide investment, mortgage and other financial services to customers using the bank as a sort of platform.
Following the vote, Raoul Mulheims, an entrepreneur who’s co-founded several digital finance firms in Luxembourg, tweeted: “The national law transposing the #PSD2 has been adopted by #Luxembourg parliament a few minutes ago. Excellent news, now let’s move ahead and do business!”