The Emergence of Financial Data Governance and the Challenge of Financial Data Sovereignty

Abstract

This chapter addresses the challenges of datafication of finance and financial data sovereignty. Section II considers the datafication of finance. Section III considers the intersection of data, finance, and data governance, highlighting emerging general data governance styles. Section IV highlights the intersection of financial data regulation and personal data regulation in the context of the evolution of a range of Open Banking strategies focusing on personal financial data. Section V presents four emerging financial data governance strategies, exemplified by the United States, EU, China, and India, seeking to bring together finance and its regulation with their evolving domestic data governance regimes. Section VI elaborates on how the result of differences in these strategies combined with prudential objectives converges toward territorialization via data localization. Section VII addresses this growing challenge of fragmentation by outlining how the well-developed transnational regulatory frameworks in finance offer an opportunity to develop technological solutions and approaches that may, in fact, support both the objectives of financial and data regulation.

Keywords: financial data governance, data sovereignty, data regulation, personal data, financial regulation