The European Association of Co-operative Banks (EACB) welcomes the opportunity to respond to the EBA Discussion Paper on innovative use of consumer data by financial institutions. It appreciates the efforts of the EBA to identify risks and benefits of innovative use of data for consumers, financial institutions and the integrity of the financial sector.
General comments :
- The EBA’s Discussion Paper on innovative use of consumer data by financial institutions is generally farely accurate and complete. It has to be observed however, that technologies, innovations and markets develop at a very fast pace and that what is accurate today can be outdated tomorrow.
- As the paper rightly observes under point 25, financial services providers are held to different standards than non-financial institutions. While this in fact is not due to regulatory barriers, it does create a difficulty for financial institutions to compete with Fintechs.
- To be competitive with FinTechs in the future, financial institutions will have to improve the efficient use of consumer data, as data volumes and new sources of data will grow exponentially. The supervisors of financial institutions should ensure that a level playing field is created that allows financial institutions to do so.
To read the comments of the EACB, please download the PDF