The EU Payment Services Directive (PSD) will considerably alter legal and client contractual relationships between corporate banks and business banking customers a research paper from TowerGroup finds.
The PSD will have wider ranging and more substantial effects than other elements of SEPA requiring even greater spend on compliance. Banks are only just waking up to the impact PSD will have on their operations, especially in regards to corporate banking, the report finds. Very few businesses and corporations are even aware of the new Directive and its implications.
"The impact of PSD is set to be far ranging and we are concerned about the lack of awareness from both banks and the customers who will be affected", said Susan Feinberg, author of the report
TowerGroup anticipates:
- Sophisticated corporate organisations will seek to leverage PSD to negotiate improved service levels with their banks
- Successful banks will advise their clients thorough all aspects of PSD, not only the bank-client contractual relationship
- Banks will have to bear the substantial cost of putting these changes into practice
Press release
© TowerGroup
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