Strategic actions to regulatory change : How banks adapt to PSD2

PSD2 is an EU directive implemented 1st May 2018 that forces banks to share information related to account information and payment initiations to third-party providers. The aim of the directive is mainly to increase integration, effectivity and competition on the European payment market. With increased competition for banks, revenues are expected to decrease and previous literature on PSD2 are consistent with the fact that strategic actions beyond compliance have to be made. However, there is no previous studies on how banks are strategically adapting to PSD2. The purpose of this thesis was to examine how banks are adapting strategically to PSD2, this to provide a better understanding about how banks are adapting to new regulatory changes. The research question "What strategic actions are being performed within banks due to PSD2?" was answered through a qualitative research by conducting semi-structured interviews with the four largest banks in Sweden. The interviews were analyzed through a thematic analysis approach. Five main implications could be concluded: (1) strategically, the researched banks are doing more than merely complying to PSD2, (2) some of the researched banks are planning to provide services that goes beyond PSD2, (3) the researched banks are creating digital platforms through open APIs, (4) innovation in the researched banks increases due to PSD2 and (5) collaborations in the researched banks increases due to PSD2