EBF Response to the European Commission’s call for evidence on Open Finance
02 August 2022
Open Finance must be considered as part of the data economy as a whole .. there must be a careful reflection of what policy option to pursue which,... empowers and delivers new opportunities for customers and, on the other, stimulates innovation in the financial sector and data economy as whole.
The European Banking Federation (EBF) has responded to the European Commission’s Call for Evidence on an “Open Finance Framework – enabling data sharing and third party access in the financial sector.” Key points that the EBF highlights include:
- Open Finance must be considered as part of the data economy as a
whole and there must be a careful reflection of what policy option to
pursue which, on the one hand, empowers and delivers new opportunities
for customers and, on the other, stimulates innovation in the financial
sector and data economy as whole.
- The approach to Open Finance should set out a framework or a scheme
with provisions on how data could be share (including consumer
protection, liability, compensation, technical obstacles) to facilitate
voluntary data sharing, based on market needs. This would help to see
for which use cases there is customer demand – for which there is the
most added value – while supporting innovation in the market.
- Trust must be the foundation of any data sharing framework as the
customer is at the centre. Consent management tools can play a role and
can be provided by any party (data holder, third party or intermediary).
- Technical obstacles such as common secure access and transfer
mechanisms and standards must be addressed. Efforts should be market
driven and build on existing developments. Any Framework should remain
technology neutral to allow for novel solutions to emerge.
- A fair distribution of value is key. Incentives should be provided
for all market actors, which will also result in better outcomes for end
users.
The response to the Call for Evidence on Open Finance should be seen as a complement to the EBF response to the European Commission’s Targeted Questionnaire on Open Finance.
EBF
© EBF
