Writing an opinion piece in American Banker Jonah Crane, a fintech advisor, points out that the CFPB and other regulators need to keep a watchful eye on the data sharing guidance; the rules are currently non binding but offer the regulators a chance to use current oversight power to enforce egregious violations; ensuring a level playing field and working with industry players can help not only consumers but regulators better understand how data sharing can be done is the most beneficial way. Source.
Most bank customers never think about how a bank’s technology works and what it means for their financial lives; core...
Envestnet’s Yodlee, Quovo and Morningstar’s ByAllAccounts have come together to establish a data sharing framework with banks and fintechs; the...
In an op-ed in the FT, the chairman of BBVA, Carlos Torres Vila, argues for the expansion of European open...
New regulations in Europe are set to effect U.S. banks that serve EU based customers. Banks need to understand what data is shareable and what new protocols to put in pace before the regulations take place in May. Source.
Despite the risks commonly cited by market participants, trading desks can leverage sensitive information to their advantage while complying with regulations and protecting that data.
Third party data sharing is becoming more prevalent in financial services as fintech providers increasingly provide more personal financial management solutions. In Europe the Revised Payment Services Directive (PSD2) is also revolutionizing data sharing for the fintech market.
American Banker provides insight on the pros and cons of data sharing also including insight from Wells Fargo and JPMorgan, who have developed leading data sharing partnerships and solutions. While the majority of the challenges to data sharing are refuted by technology experts there are a number of considerations that have limited the data sharing process.
Some of banks' leading concerns for data sharing include connectivity risks, system overloads and differing regulatory standards. Data can be affected when transferred to a third party, it can be difficult to determine data being extracted and system updates can affect data flow. Banks have also reported system overloads from data extractions at peak hours. Additionally, banks report that differing regulatory controls and standards can cause security risks when working with third party data aggregators. Source
At an event held by the CFPB banks, fintechs, regulators and consumer advocates discussed the data sharing experience; screen scraping...
Writing his weekly column in Forbes Ron Shevlin of Cornerstone Advisors talks about a few different points of view when...
Credit bureaus have had a tough past year with the Equifax breach of customer data and new legislation in the U.S. looking to increase competition by allowing lenders to use different sources; changing the credit bureau system is not as easy as it may sound as they have been intertwined in the financial services system for a long time; lenders still use the bureaus for a large majority of lending decisions, even though some alternative bureaus have seen traction; the breach at Equifax could have a lasting effect because people did have a lot of trust in the company to secure their sensitive information like social security numbers; as data sharing in financial services becomes commonplace a premium will need to be placed on how that data is secured. Source.