23 August 2017
Visit http://response.ncr.com

EBA looks into financial institutions' use of consumer data

05 May 2016  |  7690 views  |  0 Man hands on paper 1

The European Banking Authority has kicked off a debate about the benefits and risks associated with the ever-growing amounts of consumer data available to financial institutions.

Financial institutions have always used the data consumers hand over for a host of applications, but in recent years they - and a host of new fintech challengers - have been finding ever more innovative ways to put increasing amounts of information to use.

The EBA says that it is particularly interested in payment data, which offers banks a continuous insight into consumers' purchasing habits and preferences.

Potential benefits identified by the paper include cost reductions, improved product quality, and new sources of revenue for financial institutions, whereas the risks consist of information asymmetries, the misuse of data, data security, as well as reputational risks for providers.

Although general provisions apply to financial institutions on secrecy and conduct and on data protection, there are only a few requirements in EU legislation specific to the FS sector that address the use of consumer data by banks.

The EBA is inviting responses by 4 August to its paper that it hopes "will allow it to make a better informed decision on which, if any, regulatory and/or supervisory actions are needed to ensure that the regulatory framework mitigates the risks while also allowing market
participants to harness the benefits from the innovation".

Read the full paper:» Download the document now 285 kb (PDF File)

Comments: (0)

Comment on this story (membership required)

Finextra news in your inbox

For Finextra's free daily newsletter, breaking news flashes and weekly jobs board: sign up now

Related company news

 

Related blogs

Create a blog about this story (membership required)
visit www.niceactimize.comvisit www.dorsum.eudownload the paper now

Top topics

Most viewed Most shared
Rabobank constructs physical model to understand IT architectureRabobank constructs physical model to unde...
16893 views comments | 40 tweets | 77 linkedin
Mobile contactless spending accelerating in UKMobile contactless spending accelerating i...
13121 views comments | 28 tweets | 23 linkedin
Barclays pairs banking data with third party apps for SmartBusiness DashboardBarclays pairs banking data with third par...
11762 views comments | 22 tweets | 34 linkedin
Australia regulates digital currenciesAustralia regulates digital currencies
10971 views comments | 21 tweets | 35 linkedin
RBS to bring Silicon Valley to EdinburghRBS to bring Silicon Valley to Edinburgh
10863 views comments | 10 tweets | 8 linkedin

Featured job

Find your next job