|
Brussels, |
|
Financial Data Access
The EU is advancing the digitalization of the broader financial sector by introducing a new secure and open access framework for customer data in various financial services. This framework prioritizes consumer interests, competition, security, and trust.
With the rise of digital technology, new providers have entered the payment services market, including those offering 'open banking' services. Similar developments in 'open finance' solutions have been slower due to the lack of clear regulations. However, these solutions are not always efficient and secure, as they involve data users accessing customer data through interfaces set up by data holders.
In response to these trends, the framework aims to make the EU's financial sector adaptable to digital transformation, focusing on consumer protection and opportunities in the digital landscape.
Built upon the existing 'open banking' model, the framework takes a customer-centric approach, ensuring consumers and firms have control over their financial data. It also incorporates tools for personal data protection under GDPR and follows principles of business-to-business data sharing proposed in the data act.
This framework establishes explicit rights and responsibilities for managing customer data sharing beyond payment accounts. Key points include:
- Allowing customers to share data with data users (optional)
- Mandating customer data holders to provide data to data users
- Granting customers full control over data access and purposes
- Standardizing customer data and technical interfaces
- Encouraging data holders to develop high-quality data access interfaces
With the rise of digital technology, new providers have entered the payment services market, including those offering 'open banking' services. Similar developments in 'open finance' solutions have been slower due to the lack of clear regulations. However, these solutions are not always efficient and secure, as they involve data users accessing customer data through interfaces set up by data holders.
In response to these trends, the framework aims to make the EU's financial sector adaptable to digital transformation, focusing on consumer protection and opportunities in the digital landscape.
Built upon the existing 'open banking' model, the framework takes a customer-centric approach, ensuring consumers and firms have control over their financial data. It also incorporates tools for personal data protection under GDPR and follows principles of business-to-business data sharing proposed in the data act.
This framework establishes explicit rights and responsibilities for managing customer data sharing beyond payment accounts. Key points include:
- Allowing customers to share data with data users (optional)
- Mandating customer data holders to provide data to data users
- Granting customers full control over data access and purposes
- Standardizing customer data and technical interfaces
- Encouraging data holders to develop high-quality data access interfaces
|
On 28 June 2023, the European Commission presented a legislative proposal on the Financial Data Access.
The European Commission is introducing proposals to modernize the digital landscape of payments and the broader financial sector. These measures aim to enhance consumer protection, promote competition in electronic payments, and allow secure data sharing to enable consumers to access a wider range of improved and cost-effective financial products and services. The proposals prioritize consumers' well-being, competition, security, and trust. The payment services market has evolved significantly, with electronic payments in the EU rising steadily to €240 trillion in 2021, partly accelerated by the COVID-19 pandemic. Digital technology has facilitated the entry of new providers, particularly those offering 'open banking' services involving secure data sharing between banks and fintech companies. However, more complex forms of fraud have emerged, impacting consumer security and trust. In response, the proposed package aims to ensure the EU's financial sector remains adaptable to the ongoing digital shift and its associated risks and opportunities, especially for consumers. The Commission suggests two sets of measures: |
Click to read
|
- Proposal for a Regulation on payment services in the internal market (PSR): Updates to the Payment Services Directive (PSD2) and establishment of a Payment Services Regulation (PSR) to ensure secure electronic payments and transactions.
- Proposal for a Regulation COM(2023) 360 final for Financial Data Access: Establishes clear rules for data sharing, fostering innovation and competition in the financial sector.
