Open Banking in Portugal: Alive but Not Kicking?
It’s the 14th of September 2019, and the strong customer authentication (SCA) requirement of the Revised Payment Services Directive (PSD2) comes into force. With the implementation of the SCA requirement, all elements of PSD2 are now in place.
PSD2 was supposed to open up the arena for European startups & FinTechs to create APIs to connect with the existing infrastructure of banks. But did this really happen equally across Europe? The short answer is: no, it did not.
If we search the European Banking Authority’s Payment Institution Register, we notice that there are still three countries in Europe without any national TPPs (Portugal, Malta, and Romania). But why is that?
Zooming in the case of Portugal, the country now (as of April 2021) counts 126 ASPSPs (banks) and zero registered national TPPs. However, there are 74 European TPPs ‘passported’ and authorised to provide services in the country. So, although there is market demand for FinTech solutions in Portugal as other European companies are entering the market, there are no national providers to meet this demand.
Although there is market demand for FinTech solutions in Portugal as other European companies are entering the market, there are no national providers to meet this demand.
This raises three important questions:
- Are the incentives for financial services innovation in Portugal not enough?
- What makes one of the startup hotspots in Europe lag so far behind in national Open Banking solutions?
- Is the regulator aware of this discrepancy with other European countries? (Even though the Banco de Portugal has an information page about FinTechs).
I would like to leave these 3 questions up in the air for reflection and say that I look forward to seeing the ecosystem develop as we enter the era of Open Finance with new players coming into play. Need help with Open Banking integration? Take a look at our consulting and business process outsourcing solutions! 😉
Take care and stay safe!
João Parracho – Marketing & Communications Manager