On 19 February, the European Commission publicly launched its work on the digital economy, one of the priorities of the current Commission driven by Executive Vice-President Vestager. These publications include:
- A Communication on “Shaping Europe’s digital future”
- A White Paper on Artificial Intelligence (indicating how the Commission will support and promote the development of artificial intelligence)
- A Communication on “A European strategy for data”
How will that affect the financial sector? And what are the next steps?
On these initiatives, the EU is building on a number of existing EU frameworks such as: GDPR, Cyber Security Act, Non-personal data free flow regulation, the open data directive, and PSD2.
Although these initiatives are not specifically designed for the financial sector, the general framework will be applicable to the financial sector and legal and practical issues related to Artificial Intelligence and clouds for instance will do doubt impact our sector.
Further, some policy options considered will lead to policy developments in the financial sector as a next step.
Hence first of all the European Commission is working on the common framework, and the second step will be sector specific initiatives.
As part of the data strategy, the European Commission will publish in Q3 2020 a Digital Finance strategy. This would build on the “important step towards open banking” that is the PSD2, as “enhancing data sharing would contribute to stimulating innovation as well as achieving other important policy objectives”.
- The first step would be further to facilitate access to public disclosures of financial data or supervisory reporting data (e.g.: promoting the use of common pro-competitive technical standards (more integrated capital markets, market transparency and sustainable finance).
- The second step would be to ensure full implementation of PSD2 and exploring additional steps and initiatives building on this approach. This could mean further use of APIs (Application Programming Interfaces). A model that the European Commission considers developing to other sectors as well in an implementing act to the Data Act in 2021.
By Aurélie Cassou