Data is one of the hottest topics in financial services. The debate on its potential, the consequences of its use and ethics of how we deal with it is just getting going.

A range of regulatory and legislative changes are set to transform options for how customers can share their personal information. New payment services are being developed to take advantage of this data revolution that will deliver real benefits for customers, ranging from smarter money management products to faster cheque clearing.

Read Payments UK’s report looking at key developments in data usage and storage, and the implications for the payment services of the future – Changing Payments Landscape – A focus on payments data

 

Data developments

March 2017: Open data standard for APIs on bank reference and product information

  • Smarter ways to find information about local banking services (such as ATMs). 

  • More detailed comparison services for bank products.

  • Opening up payments data could yield better deals on utility contracts, gym membership or even supermarket shopping. 

From 30 Oct 2017: Launch of Image Clearing System for cheques.     

  • Faster cheque clearing.

  • Ability to pay in a cheque without needing to visit a branch, e.g. by using a smartphone.

Jan 2018: Introduction of Open Banking API standard in the UK will let customers securely share their payment transaction history. 

  • New types of multi-bank ‘dashboards’ that collate customers’ information. 

  • The potential to combine with other data (e.g. GPS or social media) to create new products.

Jan 2018: Payment Services Directive 2 will make it possible for authorised third parties to offer ‘payment initiation services’ and “account information services’ to customers.

  • Easier ways to move money between accounts.

  • The ability to securely carry out banking and payments with third party apps.

May 2018: The General Data Protection Regulation (GDPR) will apply.    

  • Right to ‘data portability’ for customers

  • End users can request all data held about them 

  • a ‘right to be forgotten’.

End 2018: Anticipated timeline for industry to deliver ‘Confirmation of payee’ for electronic payments.  

  • The ability to check the beneficiary’s details are correct (i.e. account name) before confirming a payment - lessening the chance of a customer mistake.   

2018/2019: EBA Regulatory Technical Standards on Strong Customer Authentication and Secure Communications will apply.    

  • Enhanced customer protection and security through stronger customer authentication.

 

Find out More

Read Payments UK’s report looking at key developments in data usage and storage, and the implications for the payment services of the future – Changing Payments Landscape – A focus on payments data.

Fewer than one in three people (31%) always check the terms and conditions when sharing their personal information online in return for a service, according to a new poll for Payments UK published today (Wednesday 22 March 2017).

Payments UK and TechUK hosted a landmark event, Unlocking the Power of Data: the Future of Smarter Payments, on 22 March 2017 in central London.