Protecting Consumer Data in Opening Banking

Open banking increases transparency in financial markets, by making data more widely shared, but it also creates concerns with personal data protection and privacy. Explicit consent addresses the inherent tension which exists in the use of personal data for commercial purposes – such as open banking – by enabling consumers to exert some control over the use of their data.

While consent is a core part of the legal and regulatory framework for open banking, clear guidance on how to implement consent is frequently lacking, including how to meet legal requirements under relevant laws for data protection and privacy. There are also valid concerns on the limitations to consent, since many consumers simply “tick the box” and don’t fully understand the implications of contracting a financial product or service for access to, and use of, their data.

In this session, the presenters will discuss the role of consent in open banking, how it can be strengthened and other possible complementary approaches for protecting consumer data and privacy.