Overview
PSD2 (the revised Payment Services Directive) is the EU regulation that requires banks to give licensed third-party providers access to customer account data and payment initiation through secure APIs, with the customer’s consent. Open banking is the broader practice this enables — budgeting apps, account aggregators, and pay-by-bank checkouts built on top of a bank’s data.
Why It Matters
For a fintech product, open banking APIs are often the difference between asking users to type in account details and connecting to their bank in two taps. The rules keep moving, too — the EU is already working on a successor framework, so integrations built around a single bank’s quirks tend to age badly.
How Dotcode Applies It
We build open banking integrations behind a consistent internal layer so adding a new bank or adapting to a rule change doesn’t mean reworking the product.
