AI, Fintech, and the Evolving Regulation of Consumer Financial Privacy

Oxford Handbook of AI Governance (OUP 2022) (published version available at https://doi.org/10.1093/oxfordhb/9780197579329.013.51)

20 Pages Posted: 6 Oct 2022 Last revised: 28 Mar 2023

See all articles by Nikita Aggarwal

Nikita Aggarwal

UCLA School of Law; European Corporate Governance Institute (ECGI)

Date Written: March 1, 2022

Abstract

One of the most notable developments in financial markets over the last 50 years is the growth of digital technology—a trend often referred to as “fintech.” This chapter examines fintech through the lens of consumer financial privacy, focusing on the implications of artificial intelligence (AI) and increasingly data-driven consumer finance for consumer privacy, and its regulation. It makes two principal contributions. First, taking a historical perspective, it examines the evolution of consumer financial privacy and its regulation under English law, from the duty of bank confidentiality to cross-sectoral data protection regulation. It demonstrates that this evolution has been shaped directly by the rise of fintech. Second, the chapter analyses the latest phase in fintech—AI- and data-driven decision-making—and examines the opportunities and challenges that this presents for the regulation of consumer financial privacy. Although the chapter focuses on English law, it will also be relevant to other jurisdictions that are grappling with the challenge of regulating consumer financial privacy in the age of AI.

Keywords: Financial privacy, data protection, GDPR, consumer protection, fintech, artificial intelligence, machine learning

JEL Classification: K2, G2, G3

Suggested Citation

Aggarwal, Nikita, AI, Fintech, and the Evolving Regulation of Consumer Financial Privacy (March 1, 2022). Oxford Handbook of AI Governance (OUP 2022) (published version available at https://doi.org/10.1093/oxfordhb/9780197579329.013.51) , Available at SSRN: https://ssrn.com/abstract=4235395 or http://dx.doi.org/10.2139/ssrn.4235395

Nikita Aggarwal (Contact Author)

UCLA School of Law ( email )

Institute for Technology, Law & Policy
385 Charles E Young Drive E
Los Angeles, CA 90095
United States

European Corporate Governance Institute (ECGI) ( email )

c/o the Royal Academies of Belgium
Rue Ducale 1 Hertogsstraat
1000 Brussels
Belgium

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