Data, Innovation and Transatlantic Competition in Finance: The Case of the Access to Account Rule

EU Law Working Papers No. 35, Stanford-Vienna Transatlantic Technology Law Forum (2018)

34 Pages Posted: 11 Oct 2018 Last revised: 5 Jun 2019

See all articles by Giuseppe Colangelo

Giuseppe Colangelo

University of Basilicata, Department of Mathematics, Computer Science and Economics; Stanford Law School; Bocconi University - Department of Law; LUISS Guido Carli, Department of Business and Management

Oscar Borgogno

University of Turin, Faculty of Law; University of Oxford, Faculty of Law

Date Written: April 15, 2019

Abstract

Technological innovation is transforming the structure of the retail banking sector. Traditional business models are facing a rapid disruption process led by the emergence of FinTech companies which provide innovative digitally-enabled banking and financial services.

In order to offer payment initiation services and account information services, third party providers need to access customer accounts, since information on the availability of funds on the consumer’s payment account is a key element.

The paper focuses on two major trends that underpin this new business environment, which is known as Open Banking. First, the EU has taken the lead in the transition by providing, within the revised Payment Service Directive (PSD2), a sector-specific portability regime (the access to account rule) expressly aimed at fostering competition. Indeed, one of the key points of the PSD2 is that new market players should be granted access to account data. Second, in such a context standardization plays a crucial role with regards to the implementation process and the overall effectiveness of this new pro-competitive mechanism.

Regulators in other countries have recently expressed interest in developing frameworks that put consumers in control of their account data. Additionally, they have encouraged standardization initiatives aimed at defining shared, open application programming interfaces (APIs). Will regulators in the U.S. follow suit?

Keywords: FinTech, Open Banking, Big Data, Competition Law, Access to Account Rule, Standardization, BigTech

JEL Classification: K21, K22, K23, L15

Suggested Citation

Colangelo, Giuseppe and Borgogno, Oscar, Data, Innovation and Transatlantic Competition in Finance: The Case of the Access to Account Rule (April 15, 2019). EU Law Working Papers No. 35, Stanford-Vienna Transatlantic Technology Law Forum (2018). Available at SSRN: https://ssrn.com/abstract=3251584 or http://dx.doi.org/10.2139/ssrn.3251584

Giuseppe Colangelo (Contact Author)

University of Basilicata, Department of Mathematics, Computer Science and Economics ( email )

Via dell'Ateneo Lucano 10
Potenza
Italy

HOME PAGE: http://https://sites.google.com/site/giuseppecolangelouni/

Stanford Law School ( email )

559 Nathan Abbott Way
Stanford, CA 94305-8610
United States

HOME PAGE: http://https://law.stanford.edu/transatlantic-technology-law-forum/

Bocconi University - Department of Law ( email )

Via Roentgen, 1
Milan, 20136
Italy

HOME PAGE: http://https://sites.google.com/site/giuseppecolangelouni/home

LUISS Guido Carli, Department of Business and Management ( email )

Viale Romania 32
Rome, Roma 00197
Italy

HOME PAGE: http://https://sites.google.com/site/giuseppecolangelouni/

Oscar Borgogno

University of Turin, Faculty of Law ( email )

Torino
Italy

HOME PAGE: http://www.dg.unito.it/do/docenti.pl/Show?_id=oborgogn#profilo

University of Oxford, Faculty of Law

St Cross Building
St Cross Rd
Oxford
United Kingdom

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