OPEN BANKING: Prior to the EU's new data privacy and open banking regulations, banks acted as if they knew exactly what their clients needed and didn't need to pay attention to other market segments; they no longer have that luxury. (Foto: Pixabay)

OPEN BANKING: Prior to the EU's new data privacy and open banking regulations, banks acted as if they knew exactly what their clients needed and didn't need to pay attention to other market segments; they no longer have that luxury. (Foto: Pixabay)

EU regulation will drive U.S. banks to embrace FinTech or lose market share

IDG NEWS: Europe's financial services industry has been forced to embrace open banking and customer data sharing. Now, with PSD2, U.S. banks will soon have to follow suit or face increased online competition.

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Two significant changes to European Union regulations have given the FinTech industry a major shot in the arm and strengthened its position as a competitor to traditional banking, the result of which will be that U.S. banks will be forced to rethink their client strategies.

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IDG News Service