The SFC calls for a broad, competitive, attractive and fair approach to data sharing when the European Commission will propose a regulatory framework for open finance in the EU.
Broad approach to data sharing that goes beyond finance: while we agree that increased data sharing can bring new opportunities for consumers and businesses, incl. through more competition, it is however essential to not limit the further extension of data sharing to the broader banking and financial sector but to adopt a cross-sectoral approach that would help develop new, innovative services to customers by including other key sectors of the economy such as utilities, health, etc.
Voluntary data sharing based on added value and true customer demand: data sharing should be voluntary, based on market needs and pre-identified use cases adding real value to customers. Only a voluntary approach to financial data sharing can stimulate innovation and incentivise firms to invest in, design and propose new services and products.
Reciprocity in data sharing: an open finance framework should ensure horizontal data sharing and not replicate the asymmetry in PSD2 where the sharing of data goes in one direction only, from the financial institutions to the third-party providers (TPPs) with all the cost and burden of building and operating the necessary infrastructure for instance are supported by the banks. Those who generate the data should however always have full control over the data they share.
Fair distribution of value: the approach with PSD2, whereby TPPs have access to user data held by banks free of charge, is not viable in the long term. An open finance framework should recognise value creation and allow for financial compensation, in accordance with proposed Data Act. Compensation should not only cover the quality and value of the data shared but also the cost of building the necessary modalities and infrastructures to make data sharing possible.
Level-playing field: the principle of ‘same activity, same risks, same rules’ must apply to all market participants which have access to and share user data.
Legal certainty: clear liability rules are needed for data access, processing, sharing and storage to ensure legal certainty.
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