Open Banking, Open Data and Open Finance: Lessons from the European Union
Forthcoming in Linda Jeng (ed), Open Banking (Oxford University Press, 2021), Chapter 8
UNSW Law Research Paper No. 21-69
University of Hong Kong Faculty of Law Research Paper No. 2021/49
47 Pages Posted: 11 Nov 2021 Last revised: 6 Dec 2021
Douglas W. Arner
The University of Hong Kong
Ross P. Buckley
University of New South Wales (UNSW) - UNSW Law & Justice
Dirk A. Zetzsche
Universite du Luxembourg - Faculty of Law, Economics and Finance; Heinrich Heine University Dusseldorf - Center for Business & Corporate Law (CBC); European Banking Institute
Date Written: November 11, 2021
Abstract
Europe’s path to ‘open banking’, ‘open data’ and ‘open finance’ rests upon four apparently unrelated pillars: (1) the facilitation of open banking to enhance competition in banking and particularly payments; (2) strict data protection rules reflecting European cultural concerns about dominant actors in the data processing field; (3) extensive reporting requirements imposed after the Global Financial Crisis to control systemic risk and change financial sector behaviour; and (4) a legislative framework for digital identification imposed to further the European Single Market.
This chapter analyses these four pillars and suggests that together they will underpin the future of digital finance in Europe and that together they effectively establish the framework for not only ‘open banking’ and ‘open data’ but ‘open finance’. These European experiences provide profound insights for other societies facing choices as to the role of data in their future. In some, data will be controlled by a small number of massive firms and governments which use it for profit and suppression. In others, data will be under the control of individuals – democratized data – which should support a more open and innovative economy and society. In the evolution of these futures, legal and regulatory systems will play a key role.
Keywords: open banking, open finance, open data, data-sharing, APIs, PSD2, eIDAS, and GDPR
Suggested Citation: Suggested Citation
Douglas W. Arner
The University of Hong Kong ( email )
Pokfulam Road
Hong Kong, Pokfulam HK
China
Ross P. Buckley (Contact Author)

University of New South Wales (UNSW) - UNSW Law & Justice ( email )
Sydney, New South Wales 2052
Australia
Dirk Andreas Zetzsche
Universite du Luxembourg - Faculty of Law, Economics and Finance ( email )
Luxembourg, L-1511
Luxembourg
HOME PAGE: http://wwwen.uni.lu/recherche/fdef/research_unit_in_law/equipe/dirk_andreas_zetzsche
Heinrich Heine University Dusseldorf - Center for Business & Corporate Law (CBC) ( email )
Universitaetsstr. 1
D-40225 Düsseldorf
Germany
+49 211 81 15084 (Phone)
+49 211 81 11427 (Fax)
Do you have a job opening that you would like to promote on SSRN?
Related eJournals
-
University of Hong Kong Faculty of Law Legal Studies Research Paper Series
University of Hong Kong Faculty of Law Legal Studies Research Paper Series
Subscribe to this free journal for more curated articles on this topic
FOLLOWERS5,416PAPERS884This Journal is curated by:Simon N. M. Young at The University of Hong Kong - Faculty of Law, Douglas W. Arner at The University of Hong Kong -
UNSW Law & Justice Legal Studies Research Paper Series
UNSW Law & Justice Legal Studies Research Paper Series
Subscribe to this free journal for more curated articles on this topic
FOLLOWERS5,242PAPERS1,242This Journal is curated by:Weihuan Zhou at University of New South Wales (UNSW) - UNSW Law & Justice, Graham Greenleaf at University of New South Wales, Faculty of Law -
Cyberspace Law eJournal
Subscribe to this fee journal for more curated articles on this topic
FOLLOWERS2,042PAPERS12,252This Journal is curated by:Peter Swire at Georgia Institute of Technology - Scheller College of Business, Jonathan L. Zittrain at Harvard Law School and Harvard Kennedy School of Government, Kalie Mayberry at Harvard University - Harvard Law School -
Legal Perspectives in Information Systems eJournal
Legal Perspectives in Information Systems eJournal
Subscribe to this fee journal for more curated articles on this topic
FOLLOWERS1,886PAPERS5,793 -
Banking & Insurance eJournal
Subscribe to this fee journal for more curated articles on this topic
FOLLOWERS1,767PAPERS30,279This Journal is curated by:René M. Stulz at Ohio State University (OSU) - Department of Finance -
Corporate Law: Corporate & Financial Law: Interdisciplinary Approaches eJournal
Corporate Law: Corporate & Financial Law: Interdisciplinary Approaches eJournal
Subscribe to this free journal for more curated articles on this topic
FOLLOWERS1,743PAPERS5,088This Journal is curated by:James A. Fanto at Brooklyn Law School and Co-Director of the Center for the Study of Business Law & Regulation -
European Finance eJournal
Subscribe to this fee journal for more curated articles on this topic
FOLLOWERS1,631PAPERS14,597This Journal is curated by:John A. Doukas at Old Dominion University - Strome College of Business -
Regulation of Financial Institutions eJournal
Regulation of Financial Institutions eJournal
Subscribe to this fee journal for more curated articles on this topic
FOLLOWERS1,144PAPERS10,596This Journal is curated by:Howell E. Jackson at Harvard Law School -
European Economics: Macroeconomics & Monetary Economics eJournal
European Economics: Macroeconomics & Monetary Economics eJournal
Subscribe to this fee journal for more curated articles on this topic
FOLLOWERS1,138PAPERS15,857This Journal is curated by:Marco Da Rin at Tilburg University, Department of Finance, Francesco Giavazzi at University of Bocconi - Innocenzo Gasparini Institute for Economic Research (IGIER)National Bureau of Economic Research (NBER) -
Organizations & Markets: Policies & Processes eJournal
Organizations & Markets: Policies & Processes eJournal
Subscribe to this fee journal for more curated articles on this topic
FOLLOWERS692PAPERS17,903 -
Econometric Modeling: Capital Markets - Risk eJournal
Econometric Modeling: Capital Markets - Risk eJournal
Subscribe to this fee journal for more curated articles on this topic
FOLLOWERS616PAPERS8,971 -
Monetary Economics: Financial System & Institutions eJournal
Monetary Economics: Financial System & Institutions eJournal
Subscribe to this fee journal for more curated articles on this topic
FOLLOWERS509PAPERS10,339 -
Monetary Economics: International Financial Flows, Financial Crises, Regulation & Supervision eJournal
Subscribe to this fee journal for more curated articles on this topic
FOLLOWERS498PAPERS6,602 -
Economics of Innovation eJournal
Economics of Innovation eJournal
Subscribe to this fee journal for more curated articles on this topic
FOLLOWERS348PAPERS19,351 -
Innovation Law & Policy eJournal
Innovation Law & Policy eJournal
Subscribe to this fee journal for more curated articles on this topic
FOLLOWERS264PAPERS28,534 -
Cybersecurity, Privacy, & Networks eJournal
Cybersecurity, Privacy, & Networks eJournal
Subscribe to this fee journal for more curated articles on this topic
FOLLOWERS263PAPERS3,512 -
Environment for Innovation eJournal
Environment for Innovation eJournal
Subscribe to this fee journal for more curated articles on this topic
FOLLOWERS260PAPERS14,670 -
Innovation Finance & Accounting eJournal
Innovation Finance & Accounting eJournal
Subscribe to this fee journal for more curated articles on this topic
FOLLOWERS231PAPERS4,953 -
Information Systems eJournal
Subscribe to this fee journal for more curated articles on this topic
FOLLOWERS222PAPERS6,104 -
Cybersecurity & Data Privacy Law & Policy eJournal
Cybersecurity & Data Privacy Law & Policy eJournal
Subscribe to this fee journal for more curated articles on this topic
FOLLOWERS204PAPERS6,419This Journal is curated by:Brian Ray at College of Law, Cleveland State University -
Comparative Political Economy: Regulation eJournal
Comparative Political Economy: Regulation eJournal
Subscribe to this fee journal for more curated articles on this topic
FOLLOWERS67PAPERS22,130 -
Political Economy - Development: Political Institutions eJournal
Political Economy - Development: Political Institutions eJournal
Subscribe to this fee journal for more curated articles on this topic
FOLLOWERS67PAPERS11,056