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Open banking in Europe: The impact of the Revised Payments Services Directive on Solarisbank and Insha

Author

Listed:
  • Nanaeva, Zhamal
  • Aysan, Ahmet Faruk
  • Shirazi, Nasim Shah

Abstract

Rapid developments and the adoption of financial technologies (Fintech) lead to radical changes in the delivery of financial services, including enabling fast payment systems. The recent Covid-19 pandemic catalyzed these processes, while Open Banking supports their further advancement. The concept of Open Banking is gaining global recognition for integrating innovative financial service providers into the sustainable financial ecosystem. This paper discusses Open Banking, including its core building blocks, prospects, and challenges. Given the European Union's pioneering role in adopting Open Banking regulations, the paper also reviews the revised Payment Services Directive (PSD2) and its role in advancing the European fast payment systems. Furthermore, the paper analyzes the practical implications of the PSD2 in Germany by reviewing the examples of the banking-as-a-service platform and the Islamic digital bank, Solarisbank and Insha, respectively. Finally, the paper sheds light on the benefits of Open Banking for ecosystem stakeholders, including fast payment system providers, and what they can derive from the introduction of Open Banking regulations.

Suggested Citation

  • Nanaeva, Zhamal & Aysan, Ahmet Faruk & Shirazi, Nasim Shah, 2021. "Open banking in Europe: The impact of the Revised Payments Services Directive on Solarisbank and Insha," MPRA Paper 110763, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:110763
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    File URL: https://mpra.ub.uni-muenchen.de/110763/1/MPRA_paper_110763.pdf
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    References listed on IDEAS

    as
    1. Thakor, Anjan V., 2020. "Fintech and banking: What do we know?," Journal of Financial Intermediation, Elsevier, vol. 41(C).
    2. Polasik, Michał & Huterska, Agnieszka & Iftikhar, Rehan & Mikula, Štěpán, 2020. "The impact of Payment Services Directive 2 on the PayTech sector development in Europe," Journal of Economic Behavior & Organization, Elsevier, vol. 178(C), pages 385-401.
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    Cited by:

    1. David Peón & Yanfei Sun, 2025. "The impact of PSD2 regulation on the financial performance of non-bank payment service providers: the case of Spain," Journal of Banking Regulation, Palgrave Macmillan, vol. 26(2), pages 214-231, June.

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    Keywords

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    JEL classification:

    • E49 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Other
    • G19 - Financial Economics - - General Financial Markets - - - Other
    • O35 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Social Innovation
    • P16 - Political Economy and Comparative Economic Systems - - Capitalist Economies - - - Capitalist Institutions; Welfare State
    • Q01 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - General - - - Sustainable Development

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