Financial Data Access (cepPolicyBrief)

shutterstock/Family Stock

The European Commission wants to remove barriers so that third parties can more easily develop new products and services using customer data from financial institutions. The basis for this is a legal act for an open finance framework. The Regulation regulates the access, transfer and use of financial customer data. The Centre for European Policy (cep) has serious concerns. The Regulation is neither proportionate nor practicable.

cepPolicyBrief

The Commission wants to force a large number of financial institutions to share their customers' data with third parties. However, cep financial market experts Philipp Eckhardt and Anastasia Kotovskaia are critical. "The approach of obliging a large number of financial institutions to provide and share data, regardless of any identified market failure, goes too far," says Eckhardt. "Less would have been more.”

Financial information service providers from third countries shall be given access to customer data from financial institutions in the EU. They would not need to have a branch in the EU. They would only have to appoint a legal representative in an EU member state. "This poses a risk of distorting competition. There is also a lack of equivalent opportunities for EU companies to access customer data from financial institutions in third countries," says Anastasia Kotovskaia.