The New Year Reception of the Federal Financial Supervisory Authority (BaFin) on January 10 gave an indication of the regulatory agenda for 2017. During the event, BaFin’s president, Felix Hufeld, spoke of a year “full of tasks, demands and pressures”. This overview of the regulatory challenges makes his meaning clear.
Changing customer needs, the liberalization of regulations, and the related digitalization of the payment market are having an ever greater effect, as seen in the proportional increase in the use of mobile payment methods. This being the case, it is expected that the global customer base will have increased by ~51%, and the volume of transactions by ~85% by the end of 2020.
According to Article 96 of Payment Service Directive (PSD) II, payment service providers have until 13th January 2018 to implement a reporting system for major operational and security incidents relating to cash-free transactions. The EBA proposes a classification scheme with four quantitative criteria and three qualitative ones to decide whether an incident needs to be reported.