Taking a chance on TPPs: a road banks cannot afford to follow
In her blog, payments Lawyer, Nadja van der Veer discusses banks’ duty of care to their customers and whether relying on public registers to check a TPP’s identity and regulated status is enough.
Despite all the new and varying financial players in today’s market, banks still hold a vital position in society. Firstly, they play a huge part in ensuring the stability and the integrity of the financial system. Secondly, even in the face of high-profile issues over the last few years, they are still the most trusted financial service providers in the eyes of consumers. Any imprudent behaviour from banks has been shown to have disastrous consequences for customers and the economy of not only their country, but an entire continent and even the rest of the world. With the foundations of their reputation built on security and the far-reaching ramifications of any potential failures, the stakes have never been higher for banks as they start to open their doors to TPPs under PSD2.
