FinTech and "Payment Services Directive - 2" as a factor to develop competition in the banking sector in the European Union

Abstract

The article touches upon the changes in the banking sector, which contribute to the increase of competition in the market of banking services between credit and financial institutions and technology companies. The classification of financial organizations depending on the parties involved in transactions is given. For each selected type the specificity is described and examples are given. The historical information of the payment Directive is presented. The most important components of «Payment Services Directive²» (PSD2) are reflected. Categories of payment service providers are specified, three variants of strategic development of banks are described. Goals of implementation «Payment Services Directive²». To operate a list of the types of services identified in the «Payment Services Directive²». Schematically represented the purchase of goods without Payment Initiation Service Provider and the service provider to initiate payments. The position of the Bank of Russia to the Directive is presented. Lists in which the Application programming interface (API) has been actively used. The names of the basic documents regulating API in these countries are also given. The main consequences of the implementation of the Directive, stimulating the increase of competition in the banking sector, through changes in the national legislation of the member States for the banks of the European Union are highlighted.