In 2025, the European financial sector is at a pivotal turning point with the introduction of the Third Payment Services Directive (PSD3). This regulatory evolution marks a major transition from Open Banking to Open Finance, fundamentally redefining how financial institutions interact and share data. In this context of accelerated digital transformation, low-code platforms are emerging as strategic solutions to rapidly adapt existing systems to new market requirements, with implications reaching far beyond European borders.

The Open Finance Revolution Under PSD3

From Open Banking to Open Finance: A Natural Evolution

The evolution towards PSD3 represents much more than a simple regulatory update. It marks the transition from a system centered on payment data access to a truly open and interconnected financial ecosystem. This transition enables financial institutions to enrich their services by integrating data from multiple sources, creating more personalized and comprehensive customer experiences that align with global financial innovation trends.

New Regulatory Requirements Under PSD3

PSD3 introduces fundamental changes in financial services regulation. According to recent analyses, key innovations include enhanced consumer protection, improved anti-fraud measures, and standardization of API interfaces. The directive requires financial institutions to maintain increased availability of their API services, with mandatory quarterly performance reporting - setting new global standards for financial service delivery.

Impact on the Global Financial Ecosystem

The transformation of the financial ecosystem under PSD3 opens new opportunities for market players worldwide. Companies like Leascorp, using the Basikon platform, have already demonstrated how adopting an API-oriented approach can lead to significant growth, with a 300% increase in their partner network through seamless technological integrations.

Banking APIs: Cornerstone of Digital Transformation

API-First Approach: A Strategic Imperative

In the context of Open Finance, the API-first approach becomes essential. Basikon's Core Banking solution perfectly illustrates this trend with its 100% API architecture, enabling seamless integration with existing information systems and those of partners. This approach not only facilitates regulatory compliance but also opens new possibilities for collaboration and innovation across markets.

API Standardization Under PSD3

PSD3 imposes stricter standards for banking APIs, aiming to resolve the fragmentation issues observed under PSD2. This standardization includes minimum performance requirements, mandatory functionalities, and fallback mechanisms in case of unavailability. Financial institutions must now ensure a consistent user experience across their API services, setting a benchmark for global financial technology standards.

Benefits of Composable APIs for the Financial Sector

Composable APIs represent a major evolution in financial services architecture. They allow institutions to rapidly create new products by combining different existing API services. This approach, supported by solutions like Basikon's Core Lending platform, enables greater agility in developing innovative financial services while maintaining high levels of security and compliance.

Low-Code Platforms: Accelerating Financial Innovation

Why Low-Code is Crucial for Open Finance

In the Open Finance landscape, low-code platforms have become an indispensable strategic tool. They enable financial institutions to accelerate their digital transformation while significantly reducing development costs and timelines. This approach is particularly relevant for meeting PSD3 requirements, which demand rapid adaptation of existing systems and development of new functionalities - a challenge faced by financial institutions globally.

How Low-Code Platforms Facilitate API Integration

Low-code solutions like the Basikon platform significantly simplify banking API integration. Through intuitive visual interfaces and pre-configured connectors, teams can quickly establish secure connections with various financial partners. This technical agility allows institutions to focus on innovation rather than integration complexities, providing a competitive edge in the rapidly evolving financial technology landscape.

Benefits for Financial Institutions

Adopting a low-code platform for Open Finance brings numerous tangible benefits. Financial institutions can reduce their development cycles by 60-80%, accelerate time-to-market, and quickly adapt their services to new regulatory requirements. The technological flexibility offered also enables better customization of financial services according to specific client needs, whether serving domestic or international markets.

Preparing Your Organization for the Open Finance Era

Key Transformation Steps

The transition to Open Finance requires a structured approach. Organizations must first assess their current digital maturity and identify technological gaps to bridge. Establishing a robust API architecture is a fundamental step, followed by adopting tools that enable smooth integration with the broader financial ecosystem. Basikon's Core Banking solution provides an ideal framework for this transformation, with advanced integration capabilities and native compliance with PSD3 requirements, adaptable to various regulatory environments.

Implementation Best Practices

To succeed in their Open Finance transformation, financial institutions must adopt several essential best practices. It's crucial to favor a progressive approach, train teams in new technologies, and maintain constant dialogue with ecosystem partners. Data security and regulatory compliance must remain at the heart of all implementation decisions, particularly in light of evolving global privacy standards.

Key Success Factors

Success in the Open Finance era relies on several determining factors. The ability to innovate rapidly, the quality of technological partnerships, and operational excellence are essential. Organizations must also invest in continuous training of their teams and maintain active monitoring of regulatory and technological developments in the sector, ensuring global competitiveness.

Conclusion

The advent of PSD3 and Open Finance marks a decisive turning point for the global financial sector. Financial institutions that can leverage low-code platforms and banking APIs will be best positioned to thrive in this new environment. The combination of adaptive technology like that offered by Basikon and a clear innovation strategy becomes essential for successful transformation in today's interconnected financial world.

Ready to transform your business with Open Finance? Discover how Basikon's low-code platform can help you capitalize on PSD3 opportunities and beyond. Request your personalized demo today.

FAQ

What new elements does PSD3 bring compared to PSD2? PSD3 significantly broadens the scope from Open Banking to Open Finance, strengthens security measures and consumer protection, and standardizes API interfaces for better interoperability across markets.

How do low-code platforms facilitate PSD3 compliance? Low-code platforms enable rapid adaptation to new regulatory requirements through their flexibility and pre-configured components, reducing compliance implementation time and costs while ensuring global standards adherence.

What are the main challenges of Open Finance for financial institutions? Major challenges include data security, technical integration with multiple partners, ongoing regulatory compliance, and adaptation of existing business models to new market demands.

How to choose the right technology platform for Open Finance? Priority should be given to platforms offering native API architecture, extensive integration capabilities, robust regulatory compliance, and flexibility allowing for future service evolution across different markets.

What are PSD3's impacts on data security? PSD3 strengthens data security requirements with stricter authentication measures, enhanced fraud protection, and increased control mechanisms for data sharing, setting new global standards for financial data security.