Over the last few months you may have heard (frankly, boring) rumblings about the bureaucratic changes being made in the banking sector and how it will change the face of personal finance in Europe; the so-called PSD2 regulations.
If you have, or even if you haven't, it's something to begin taking note of; as in reality, they are changes that will affect all aspects of your financial life right down to your everyday experience with Oval. It's important to know what changes it will make and what benefits it will bring you.
We have written a number of in-depth articles about the changes PSD2 is set to bring in order to keep you abreast of the situation as it develops, to which you will find links in the article below.
The dawning of a new age
Before PSD2 there probably were not many of us who knew the true owner of our own transactional data. It may have come as a surprise that it is, in fact, the bank who owns this data, not you.
PSD2 is the dawning of a new age when it comes to updating laws on data ownership. Under the new regulations, this data reverts from the banks control and back to its rightful owner - you.
Why is this important? Because ownership implies control, and control implies freedom to choose. You are now free to do what you want with this data. You can share it with reliable third party providers (like Oval!) in order to improve your financial life and find products tailor made for you.
Enjoy a better experience
If you want to buy a new mobile phone, book a vacation, or choose a restaurant for your anniversary, you can now almost take it for granted that your user experience is going to be seamless. Whatever you want is only a click away, and the platforms that provide you with these services are all carefully crafted with you in mind. They are simple, clear, and easy to use.
What would you say if someone told you that with PSD2 this experience would now also be available when interacting with your bank?
The turning point will undoubtedly come when a union is made between the traditional banking sector - who have decades of experience in process services - and strong customer focused third party providers like Oval, who value customer experience and opportunity.
The traditional banking model was not focused on opening a dialogue with its users. As a consequence, they were less used to accommodating the various needs of their users. Because of this, almost all financial products were designed and delivered with a "one size fits all" approach.
Today, however, there is a growing expectation from all quarters that any financial service you buy should be custom tailored to your needs.
As we've mentioned, thanks to PSD2 you will assume ownership of your own data, therefore allowing you to share it with alternate service providers such as Oval. This will deliver untold benefits to the user.
Namely, because companies such as Oval are created and designed to improve your personal finance experience. They will tailor make your experience to your expectations and help you discover a new way of managing and developing your finances thanks to smart AI and cutting edge data aggregation software. As an Oval user, you will already have had a taste of these new possibilities thanks to the Oval Statistics section in-app.
You will learn to frame new questions, to which your data will be able to provide insightful and illuminating answers; changing your banking experience forever.
Finally, a simple life!
As you can read here, being able to share your data with an account information service provider (AISP) like Oval makes it possible for you to finally have the data relating to all your accounts and payment methods displayed in one place.
Not only is this more practical; as with an overall view of all accounts you are less likely to forget about particular accounts or lose track of your account balances, but you will also have a better understanding of how your money is moving and where you can make savings and improvements in your habits.
It will, however, become more difficult to hide problem spending or crazy nights out from yourself!
More banks managed
In terms of your experience with Oval, this is where PSD2 changes are critical. Previously, if you were a member of a smaller bank you may have had difficulty connecting your account to the Oval app as your bank didn't support the action. With PSD2, however, every bank must be compliant and so you will no longer miss out on any great Oval opportunities like savings steps, the dashboard feature, or the investment section.
Greater transparency and fewer costs for you
Another way that your bank may have made your life difficult when using Oval or other third party providers is by charging you a transaction fee each time you moved your own money between your bank and oval accounts. Now, thanks to PSD2, all these charges will become unlawful and you will no longer have to pay for any transactional fee when moving your money.
Are you ready for the revolution?