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Open banking and inclusive finance in the European Union: Perspectives from the Dutch stakeholder ecosystem

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  • Preziuso, Massimo
  • Koefer, Franziska
  • Ehrenhard, Michel

Abstract

In the European Union (EU), the revised Payment Services Directive (PSD2) aims to provide more convenient and customized financial products through open banking (OB) platforms. However, little attention has been paid to the role of OB in improving the financial well-being of the growing number of the EU's underserved groups, which currently constitute approximately a quarter of its population. This study examines how the PSD2 and OB impact inclusive finance in the EU based on the perspectives of the Netherlands' ecosystem, one of the leaders in the EU's financial technology (FinTech) landscape. A fundamental distinction can be drawn between the OB users and the ecosystem's players. Regarding the impact of financial services on the users' inclusivity, while the PSD2 strengthens the infrastructure necessary for financial inclusion, many challenges remain, mainly because it was not designed for this purpose. This study identifies several areas of improvement that include adjustments to the know your customer (KYC) and anti-money laundering (AML) processes for underserved customers, innovative ways to communicate the PSD2's potential, and the regulation of technology providers' activities to build trust. Meanwhile, from the ecosystem's position, there is a need to strengthen and improve microfinance regulation according to the opportunities provided by the PSD2 to support microfinance institutions (MFIs) in scaling up and reaching underserved clients across borders with innovative services. OB improvements can also be achieved by organizations formed by MFIs and FinTechs in collaboration with banks. Such hybrid institutions will combine the best features of each of them: knowledge of the needs of local underserved clients from MFIs, technological innovations from FinTechs, and large and trusted customer bases, infrastructures, and access to institutional investments and governments from banks. Finally, an EU inclusive OB sector depends on the centrality of trusted regulators as coordination bodies.

Suggested Citation

  • Preziuso, Massimo & Koefer, Franziska & Ehrenhard, Michel, 2023. "Open banking and inclusive finance in the European Union: Perspectives from the Dutch stakeholder ecosystem," EIF Working Paper Series 2023/94, European Investment Fund (EIF).
    • Handle: RePEc:zbw:eifwps:279536
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    Cited by:

    1. Ivan Radanovic, 2024. "Contemporary data sharing models: open banking and open finance," Working Papers Bulletin 24, National Bank of Serbia.
    2. Akyildirim, Erdinc & Corbet, Shaen & Mukherjee, Abhishek & Ryan, Michael, 2025. "Global perspectives on open banking: Regulatory impacts and market response," Journal of International Financial Markets, Institutions and Money, Elsevier, vol. 101(C).
    3. Vinicius Dezem & Swati Sachan & Marcelo Macedo & André Longaray, 2024. "Optimal data-driven strategy for in-house and outsourced technological innovations by open banking APIs," Future Business Journal, Springer, vol. 10(1), pages 1-30, December.
    4. Dongqing Chen & Chaoqun Ma & Liwei Zhang & Lijie Li, 2025. "Unraveling the role of data sharing in open finance diffusion: an evolutionary game approach on complex networks," Future Business Journal, Springer, vol. 11(1), pages 1-28, December.
    5. Desiraju, Kanti & Mishra, Arindra Nath & Sengupta, Pooja, 2024. "Customer perceptions on open banking apps: Insights using Structural topic modeling," Journal of Retailing and Consumer Services, Elsevier, vol. 81(C).
    6. Fabian Sven Karst & Mahei Manhai Li & Jan Marco Leimeister, 2025. "SynDEc: A Synthetic Data Ecosystem," Electronic Markets, Springer;IIM University of St. Gallen, vol. 35(1), pages 1-28, December.
    7. Ana Maria Barbosa Casolaro & Gabriela Nogueira Rauber & Ursula Silveira Monteiro Lima, 2025. "Open banking: a systematic literature review," Journal of Banking Regulation, Palgrave Macmillan, vol. 26(3), pages 340-355, September.
    8. Soon Suk Yoon & Ingyu Oh & Shawn S. Park, 2025. "Does Disproportionate Financial Inclusion Reduce Gender and Income-Group Inequality? Global Evidence," IJFS, MDPI, vol. 13(2), pages 1-25, June.
    9. Zhuang Liu & Xingyi Li & Zhongfei Li, 2024. "Inclusive FinTech, open banking, and bank performance: evidence from China," Financial Innovation, Springer;Southwestern University of Finance and Economics, vol. 10(1), pages 1-24, December.

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