PSD2 Regulations: Lessons from Europe for Latin America

PRESS RELEASE from Latinia

(Please note that this is a machine translation)

November 5, 2019

During the month of September, the European regulation PSD2 came into force that proposes "fundamental changes in the financial industry", as well as offering access to the client's banking information if authorized, and developing a new and enriching market for value services In addition, the directive aims to increase consumer safety in the payments you make. Even so, the European Banking Authority (EBA) has granted a period of 12 months after its entry into force on September 14.

Latinia, manufacturer of financial notification software, values this last point positively. “To the extent that the regulations entail the requirement of a two-factor authentication for most electronic payments, it could increase the use of our products in financial institutions, providing us with the necessary experience and rigor of the process in case it is included in the new Latin American regulations. This type of operations encourages entities to provide themselves with infrastructures that allow them to reconcile the large volume of transactionality with the minimum communication with their clients, ” explains Oriol Ros, global marketing director of the Spanish software manufacturer.

One of the objectives of enhanced authentication or double authentication is to reduce electronic fraud. This means that, to authorize an operation, either a transaction or simple access to the bank's website, it will be necessary to use at least two of the following methods, independent of each other: something inherent to the client, such as fingerprint or facial recognition ; something the customer has, such as a card, a digital certificate or a mobile phone; or something the customer knows, such as a PIN number or password.

Europe is currently a kind of real sandbox, a test field, for the rest of the markets, Latin America being the closest for the experience that Spanish banks can transfer in terms of security.

“The regulations will enhance the platforms that provide different authentication paths, as is the case with notifications. When this duality is demanded there will always be more space, both for other systems and for notifications. Some will force the client to download their App, demanding to activate the client's channel of push notifications, or others by sending codes received by SMS, leaving the current key cards to operate in online banking for the trunk of the story ”, concludes Oriol Ros.