The Association for Financial Markets in Europe (AFME) has published a paper entitled ’Open Finance and Data Sharing – Building Blocks for a Competitive, Innovative and Secure Framework’, highlighting what it believes is needed to support the development of an Open Finance Framework.
The first principle, the paper states, is the importance of a level playing field, with consistent regulatory oversight a priority.
Interoperability and standardisation are also required, AFME says. This will allow for high-quality data, and support the idea of a level playing field. Data must be fit to purpose and reliable, supported by appropriate infrastructure.
The paper additionally discusses the need for an appropriate compensation framework, by which fair competition is safeguarded and a fair distribution of costs across the data value chain is possible.
The final principle cited is clear liability provisions, which will provide legal clarity on data storage and sharing in line with existing legislation.
The paper is released in anticipation of the European Commission’s data access in financial services framework, which is expected in the next few months as well as at AFME’s OPTIC’s Conference which begins tomorrow (27 September) in London.
Elsie Soucie, associate director of technology and operations at AFME, comments: Open Finance in the EU’s data economy will transform the way banks share data with each other, and also with third-party providers, such as fintech companies.
“But with innovation comes potential for unintended consequences such as sharing data with participants in other sectors who may already have a dominant share of both individual and corporate data and which could lead to monopolies and the exploitation of data. Therefore AFME has identified four key principles to help address these risks and to support policy makers in the development of a robust Open Finance Framework.”
