Big Tech Banking

Mano, Miguel de la; Padilla, Jorge

doi:10.1093/joclec/nhz003

Cited by 38 publications

(16 citation statements)

References 26 publications

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“…Interoperability was the goal of the right to data portability of the GDPR. However, controllers are not obliged to adopt or maintain processing systems that are technically compatible (European Union, 2016 [58]; De Hert et al, 2018 [59]). Anecdotal evidence confirms that even though many digital services enable consumers to download their personal data, they still rarely allow them to upload data from other services.…”

Section: Risks Of Unintended Adverse Effects On Market Structuresmentioning

confidence: 99%

Mapping data portability initiatives, opportunities and challenges

2021

OECD Digital Economy Papers

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Data portability has become an essential tool for enhancing access to and sharing of data across digital services and platforms. This report explores to what extent data portability can empower users (natural and legal persons) to play a more active role in the re-use of their data across digital services and platforms. It also examines how data portability can help increase interoperability and data flows and thus enhance competition and innovation by reducing switching costs and lock-in effects.The report was drafted by Christian Reimsbach-Kounatze, Andras Molnar, Suguru Iwaya, and Elettra Ronchi (all from the OECD Secretariat). Lauren Bourke and Holly Ritson contributed to earlier drafts of this report. The report was prepared under the aegis of the OECD Committee for Digital Economy Policy (CDEP), with input from delegates of the Working Party on Data Governance and Privacy in the Digital Economy. Delegates to the DGP and CDEP provided valuable feedback. The report builds upon three expert workshops and a survey of business practices. The support of the Danish Business Authority is gratefully acknowledged. This paper was approved and declassified by written procedure by the Committee on Digital Economy Policy (CDEP) on 1 October 2021 and prepared for publication by the OECD Secretariat.

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Section: Risks Of Unintended Adverse Effects On Market Structuresmentioning

confidence: 99%

Mapping data portability initiatives, opportunities and challenges

2021

OECD Digital Economy Papers

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“…Not many authors dealing with the European Union way of promoting open banking, based on the access to account rule contained in the Directive (EU) 2015/2366 on payment services in the internal market (PSD2), have tried to assess its repercussions on competition 7 . However, a common feature of these contributions is that the focus shall be put on the so-called access to account (XS2A) rule, set out in various provisions of PSD2.…”

Section: The Benefits and Potential Drawbacks Of The Eu Approach To Open Bankingmentioning

confidence: 99%

Open Banking and Competition: An Intricate Relationship

Palmieri¹,

Nazeraj²

2021

Competition Law (In Pandemic Times): Challenges and Reforms

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Open banking – promoted in the European Union by the access to account rule contained in the Directive (EU) 2015/2366 on payment services in the internal market (PSD2) – is supposed to enhance consumer’s welfare and to foster competition. However, many observers are fearful about the negative effects of the entry into the market of the so-called BigTech giants. Unless incumbent banks are able to rise above the technological challenges, the risk is that, in the long run, BigTech firms could dominate the market, by virtue of their great ability to collect data on consumer preferences, and to process them with sophisticated tools, such as Artificial Intelligence and Machine Learning techniques; not to mention the possible benefits arising from the cross-subsidisation. This paper aims at analysing the controversial relationship between open banking and competition. In this framework, many aspects must be clarified, such as the definition of the relevant markets; the identification of the dominant entities; the relationship with the essential facility doctrine. The specific competition problems encountered in the financial sector need to be inscribed in the context of the more general debate around access to data in the digital sphere. The evolving scenario poses a serious challenge to regulators, calling them to strike the right balance between fostering innovation and preserving financial stability. The appraisal intends not only to cover EU law and policy, but also to make a comparison with other legal systems. In this respect, something noteworthy is taking place in the United States where, as of today, consumers’ access to financial data sharing has been largely dependent on private-sector efforts. Indeed, Section 1033 of the Dodd-Frank Wall Street Reform and Consumer Protection Act (passed in the aftermath of the financial crisis of 2008) provides that, subject to rules prescribed by the Bureau of Consumer Financial Protection (CFPB), a consumer financial services provider must make available to a consumer information, in its control or possession, concerning the consumer financial product or service that the consumer obtained from the provider. This provision, which dates back to 2010, has never been implemented. However, on 22 October 2020, the CFBP has announced its intention to regulate open banking, issuing an advanced notice of proposed rulemaking. In light of their investigation, the authors advocate the adaptation of the current strategies to the modified conditions and, in some instances, the creation of novel mechanisms, more suitable to face unprecedented threats.

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“…Es posible, sin embargo, que la entrada de las bigtech dé lugar a mercados crediticios aún más concentrados y a un aumento de la inestabilidad financiera en el medio o largo plazo (De la Mano y Padilla, 2018;Padilla, 2021;Frost et al, 2019). En particular, existe el riesgo de que estas empresas puedan monopolizar los servicios de pago.…”

Section: Introductionunclassified

La entrada de las bigtech en el negocio bancario: un análisis coste-beneficio

Padilla

2022

Revista ICE

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La entrada de las bigtech puede transformar el negocio bancario de manera radical, en especial, los mercados de pagos y de crédito al consumo y a pymes. Aunque es de esperar que dicha entrada estimule la competencia en beneficio de los clientes de la banca minorista, también puede dar lugar a mercados crediticios aún más concentrados y aumentar la inestabilidad financiera. Que el resultado neto para la economía y, en particular, para los consumidores y las empresas sea positivo dependerá en buena medida de la actuación de reguladores y autoridades de competencia.

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Big Tech Banking

Cited by 38 publications

References 26 publications

Mapping data portability initiatives, opportunities and challenges

Mapping data portability initiatives, opportunities and challenges

Open Banking and Competition: An Intricate Relationship

La entrada de las bigtech en el negocio bancario: un análisis coste-beneficio

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