3. Regulatory Upheaval: PSD2, Trump, and Beyond

If there’s one area looking like a powderkeg for 2017, it’s regulation: anything from European institutions gearing up for the dawn of PSD2, to the potential end of  Dodd-Frank, regulatory change has the potential to turn the current financial landscape into something all but unrecognizable. The results of the regulatory ripples set in motion from events such as the Brexit and the election of President-Elect Trump will begin to be seen this year. While PSD2 won’t actually be implemented until next year, its impact on how banks and fintechs will have to treat consumer data is going to echo through the industry for years, even if the best outcome for banks is achieved (where more transactions are conducted directly through the bank account as opposed to through cards). Consumers grew less and less tolerant of watching their data slip through their fingers in 2016, and that’s only going to continue this year — meaning the way the financial world chooses to treat that data is only going to grow more important. Other regulations have the potential to put fintechs and banks on the same side of the board, like the OCC’s decision to grant limited charters to fintechs, while still others might eliminate some of the methods where fintechs have historically prospered over traditional institutions (most notably in the world of lending). In other words, keep both the compliance and IT departments running tight this year — 2017 is going to be a year of tremendous regulatory change.

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