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

See all articles by Douglas W. Arner

Douglas W. Arner

The University of Hong Kong; The University of Hong Kong - Faculty of Law

Ross P. Buckley

University of New South Wales (UNSW) - UNSW Law & Justice

Dirk A. Zetzsche

Universite du Luxembourg - Faculty of Law, Economics and Finance; 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

Arner, Douglas W. and Buckley, Ross P. and Zetzsche, Dirk Andreas, Open Banking, Open Data and Open Finance: Lessons from the European Union (November 11, 2021). 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, Available at SSRN: https://ssrn.com/abstract=3961235

Douglas W. Arner

The University of Hong Kong ( email )

Pokfulam Road
Hong Kong, Pokfulam HK
China

The University of Hong Kong - Faculty of Law ( email )

Pokfulam Road
Hong Kong, Hong Kong
China

HOME PAGE: http://hub.hku.hk/rp/rp01237

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

European Banking Institute ( email )

Frankfurt
Germany

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