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PSD2 confusing consumers as regulation looms

Nearly nine in ten consumers have no idea how PSD2 may benefit them in the future, according to research from Intelligent Environments.

Two-thirds of respondents to the firm’s survey thought that the sharing of data with third-parties would compromise their safety. 65% worried that their accounts might be harder to manage when spread out over multiple providers.

A lack of clarity in the location of data was a major concern for 70% of those asked. 72% said that they feared increased spam advertising.

Once informed as to the benefits of the regulation, those feelings changed. Just over a fifth said that they would look forward to managing multiple bank accounts. 11% expressed interest in receiving third-party advice on how to better control their finances.

A further 21% believed that it would be “more convenient than ever” to manage their money. A similar figure thought PSD2 will provide them with a better digital overview of their finances.

“Despite financial institutions’ best intentions, there is still a lot of uncertainty and doubt around the introduction of PSD2, with consumers either unaware, or actively afraid of the new rules,” said Jerry Mulle, sales and marketing director at Intelligent Environments.

“Despite these worries, the reality couldn’t be more different: PSD2 has been created with the consumer in mind, and is set to revolutionise the financial services industry, helping provide users with the option to better manage their finances while avoiding debt.

“For financial services organisations, the findings speak clearly: more must be done to educate consumers on the impending legislation, assuaging their concerns and making clear the industry-changing benefits that are still to come.”

Wax on, wax off

Previous research by Intelligent Environments has indicated that PSD2 could help the quarter of young Brits in debt.

53% of those in debt say they would prefer to manage it online, while 61% would feel more in control if they had visibility of all activity in one place.

The research suggested that, in addition to making finances easier to manage, the increase in visibility PSD2 could bring about may also have a positive benefit for lenders and creditors. Consumers would be able to check their bank accounts alongside utility bills and debts through a single digital platform.

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