IIF Authors

Status: Will be live at 08/01/2018 00:00

Reciprocity in Customer Data Sharing Frameworks

Wednesday, August 1, 2018

Where data sharing frameworks have often been developed for objectives such as promoting competition by reducing barriers to entry, empowering consumers and facilitating innovation, some of these frameworks have created asymmetries between different types of market participants, with the potential to actually distort that competitive landscape. This paper explores some possible alternate models that would address this asymmetry, through various forms of reciprocal data sharing amongst market participants.

To ensure fair and open competition that benefits customers, the IIF believes that the design of data sharing frameworks should satisfy a number of key requirements, most notably:

  • Customer data control: customers have control over their raw data, and how it is shared and used
  • Transparency: clarity on processes, with tools for customers to authorize and manage access accordingly
  • Security: customers must have absolute confidence about the security of their data
  • Incentives: market participants should be correctly incentivized to build value-adding proposals for customers'

Reciprocal data sharing frameworks that follow these principles will ensure fair and dynamic competitive landscapes, benefitting customers and helping to unleash the full potential of the digital economy.

Note: This paper is the second in the IIF's series on data protection and data sharing regulations in the financial services sector, following our earlier paper on Safeguarding Customer Data in the Financial Sector.'