How the EU’s new regulation levels the field between banks and fintechs.

Something big is coming to European finance and especially to the Nordics.

PSD3, the EU’s next payment services directive, is designed to fix what PSD2 started. More importantly, it’s about opening the financial market even further. Not just for consumers, but for challengers. Fintechs. Innovators. Builders.

And for the first time, the rules really might favor the underdogs (like neo-banks and fintechs).

The context: where the Nordics are today

Let’s set the stage.

Nordic countries are often seen as the gold standard in digital banking. Seamless apps, strong digital ID (I’m obviously biased having worked first-hand with product development at the leading identity provider in Sweden), and fast payments.

But beneath the surface, the big banks still control the rails. Most fintechs rely on them for access, whether it’s payment systems, customer data, or basic infrastructure.

Now, PSD2 helped unlock some of that. But PSD3 is slated to push it much further.

So what’s changing?

In short, PSD3 makes it harder for incumbents to block the door and easier for new entrants to walk through it.

Here’s how:

• Banks must open up -> APIs must work reliably, without hidden throttles or bad UX.
• Fintechs get direct access -> Licensed players can connect to payment systems, bypassing the banks entirely.
• No more de-risking excuses -> Banks can’t deny fintechs a bank account without a legitimate reason.
• Better data rights ->Users can see and control exactly who has access to their financial data.
• Security that works for everyone -> Strong authentication, but without locking out users without smartphones.

Why this matters for the Nordics

This region has some of Europe’s most advanced banks and some of its best fintechs. But it also has one of the tightest grips on the financial stack.

PSD3 breaks that open.

For years, startups have been slowed down by inconsistent APIs, unclear liability, and a general dependence on incumbents. That changes with PSD3.

A Swedish fintech should be able to scale to Finland, Denmark, and beyond without rebuilding integrations or renegotiating access. A Norwegian startup should get the same infrastructure rights as a legacy bank. And if a user wants to switch apps or services, they should be able to do it in a few taps without the bank getting in the way.

The shift: from control to competition

The most important shift isn’t technical. It’s structural.

PSD3 turns infrastructure into a commodity. The power shifts from who owns the rails to who builds the best product on top of them.

That’s good news for product teams. It means we can stop hacking around bad APIs and start focusing on real customer value. It means we can compete on experience, not just access. It means the best ideas (no matter where they come from) can win.

In the Nordics, this creates space for:

• More embedded finance in non-financial apps
• Cross-border financial products that actually work
• New categories of fintech built on top of cleaner, shared infrastructure

And perhaps most importantly: it gives users more choice.

What banks will need to reckon with

Honestly, this should be a wake-up call for big banks.

I have a hard time seeing the mortgage industry changing any time soon. However, their revenue from card fees and payment margins is under pressure. Their control over who gets to build on top of their systems is fading. And their brand visibility could shrink as more services become embedded in third-party experiences.

Some banks will fight it. Others will adapt. The smart ones will lean into partnerships, platform strategies, and product-led thinking. Nordea is and has been doing an awesome job here over the past few years, as an example.

What’s next?

PSD3 is expected to come into force in 2026. That’s soon, especially if you’re working in a big bank where things tend to move slowly.

Now is the time to:

• Start reviewing your API stack
• Rethink consent, access, and liability
• Look for new partnerships and platform plays
• Imagine what your product could do with fewer gatekeepers

Because when the rules shift, the best opportunities tend to show up fast.

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The bottom line?

PSD3 is not just another regulation. It’s a reset.

And in the Nordics, where the infrastructure is strong and the appetite for innovation is real, this could be the moment that levels the playing field and opens the floodgates for what’s next.