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As also happens for some regulatory areas and specific rules, even the European Directive concerning electronic payment services is summarized by an acronym: PSD. These three letters in fact identify the Payment Services Directive, that is the Directive 2007/64/EC, issued by the European Commission in 2007 and implemented in the Italian national law with the Legislative Decree no.11 of 27 January 2010, later entered in force in March of the same year. As also reported on the website of the Italian Banking Association, this document was the first to outline a “modern and coherent EU legal framework for electronic payment services”. The ABI also summarizes the objectives of the PSD:
Obviously, the issue of electronic payments and, in general, of the growing digitalization of all fields of society made it necessary to issue a regulatory update on the subject, namely Directive (EU) 2015/2366, more commonly known as PSD2. The second directive on payment services entered into force in the European Union on 13 January 2016, with a deadline for transposition in the following two years for the member states. Regulatory analysis on electronic payments is a complex activity, also due to the continuous evolutions of technology and the need for all financial institutions to align themselves with the authorities’ requirements in order to provide their services. But even the PSD2, thanks to Daitomic, can finally be analyzed faster and more accurately. This innovative RegTech solution, in fact, exploits Artificial Intelligence to offer automatic and real-time regulatory updates on any financial regulatory area, therefore also on electronic payment services.
Therefore, the European Union Directive 2015/2366 is part of the interventions aimed at modernizing the European retail payments legislative framework, therefore at developing secure, efficient, competitive and innovative electronic payment systems for consumers, businesses and merchants. As reported by the European Commission itself, “empowers the Commission to adopt delegated and implementing acts to specify how competent authorities and market participants shall comply with the obligations laid down in the directive”. This regulation entered into force on 12 January 2016 and has been applied in the EU since 13 January 2018, but the European Union subsequently issued two other documents to supplement the PSD2, namely the Implementing Regulation (EU) 2019/410, which establishes implementing technical standards regarding the details and structure of information on payment services, and the Delegated Regulation (EU) 2019/411, which supplements Directive (EU) 2015/2366 of the European Parliament and of the Council regarding regulatory technical standards that define the technical requirements relating to the development, management and maintenance of the central electronic register in the payment services sector and access to the information contained therein. In particular, these regulatory updates related to payment services have introduced new security procedures for online account access and electronic payments by banks and by new market operators, especially with respect to the e-Commerce and online shopping sectors. In Italy, the PSD2 was implemented with Legislative Decree no. 218 of 15 December 2017, which then entered into force on 13 January 2018. The main banking authority involved in the PSD2 enforcement, in addition to the European Commission, is the European Banking Authority, which contributes to the work of the EC by offering indications and technical standards, as well as publishing guidelines and recommendations to be followed in the field of electronic payments. In addition to the EC and the EBA, within the European Union there are also groups of experts and committees to support the banking authorities with respect to PSD2, such as the Expert Group on Banking, Payments and Insurance (EGBPI), the Payment Systems Market Expert Group (PSMEG), and the Payments Committee (source: European Commission).
The electronic payment services issue has therefore been crucial for financial compliance professionals in recent years. While analyzing the PSD2 and the other regulations related to digital payments, the possibility to get fast and accurate information is essential, in order to make confident decisions in a reasonable time. Currently this possibility is not supported by adequate technological tools, but Daitomic is designed to revolutionize this situation. Thanks to the proprietary Artificial Intelligence engines developed by Aptus.AI, this RegTech platform creates an electronic and machine readable version of financial regulations, thus allowing an automated analysis of regulatory updates and offering compliance professionals the unprecedented opportunity to focus only on the strategic and decisional aspects of their job.
First of all, Daitomic allows users to interactively navigate financial regulations and compare their different versions, to identify, for instance, the differences between the first Payment Services Directive (2007) and the PSD2 (2015). In addition, the platform also includes a customizable email notifications system, which keeps users updated - automatically and in real-time - on their regulatory areas of interest.
But Daitomic goes beyond the regulatory alerting on electronic payment services, as it is also capable of preparing the PSD2 impact analysis. Once received the email alert about regulatory update, users can also use the platform to automatically extract the related regulatory obligations and link them with the internal processes impacted.
Therefore, thanks to its automatic obligations extraction feature, Daitomic automates and optimizes all those steps of the compliance processes that do not require human skills, which instead are indispensable to make the right decisions and develop proactive strategies. And, by using Daitomic, compliance professionals are enabled to save the time and get the accurate information they need for these activities. Do you want to try Daitomic for free and bring it into your organization? Click below!
