Zetzsche Dirk, Douglas Arner, Ross Buckley, Rolf H. WeberCommon Market Law Review, Issue 57, pp. 331-360
published in 2020
Abstract: Europe’s path to digitization and datafication in finance rests on four pillars: (1) extensive reporting requirements imposed after the global financial crisis to control systemic risk and change financial sector behaviour; (2) strict data protection rules reflecting European concerns about dominant actors in the data and technology industries; (3) the facilitation of open banking to enhance competition in banking and payments; and (4) systems for digital identification for individuals and legal entities designed to further the Single Market and enhance financial integrity and transparency. The article analyses these pillars and suggests that - together - they are triggering a transition to data-driven finance and will underpin the future of digital financial services in the EU. The pillars bolster an emerging ecosystem which aims to promote a balance among a range of sometimes conflicting objectives, including systemic risk, data security and privacy, efficiency, customer protection, and market integrity. As well as supporting digital financial transformation in Europe, the EU experiences provide important insights for other societies in developing regulatory approaches to the intersection of data, finance and technology.