Czech Republic's Open Banking Momentum and Challenges for Fintech Startups
Open banking is gaining traction in the Czech Republic, driven by the implementation of the Payment Services Directive 2 (PSD2), which has enhanced API connectivity between banks and fintech companies. This regulatory framework is part of broader European reforms aimed at fostering data-sharing and personalized financial products. Despite these advancements, Czech fintech startups face significant challenges, including competition for funding and visibility against larger ecosystems in cities like London, Berlin, and Amsterdam. Additionally, compliance with regulatory requirements such as the Digital Operational Resilience Act (DORA), AI governance, and future PSD3 frameworks could strain smaller firms. The Czech Republic is also actively engaging in discussions on digital assets and crypto regulation, with traditional banks investing in mobile banking, AI-powered tools, and digital customer experiences. 
