Topic 10: The evolving banking landscape

Question 1

What is a challenger bank?

Answer 1

A new type of bank set up to compete with large, traditional, national banks

Question 2

What is the ‘Payment Services Directive’ (PSD)?

Answer 2

The EU’s PSD was introduced in 2009. The FCA is the UK’s ‘competent authority’, responsible for regulation of the payment transactions of banks, building societies and other organisations that transfer money to clients.

Payment Service Regulations (PSRs) cover most payment services. These created a new class of regulated firm known as payment institutions (PIs), regulated by the FCA.

Question 3

What is the ‘Second Payment Services Directive’ (PSD2)?

Answer 3

Fundamental piece of payments-related legislation in Europe, which took effect in 2016.

Question 4

What is human-centred design?

Answer 4

A framework which focuses on the human perspective in all steps of the problem-solving process.