In order for an Open Finance Framework to flourish not only in financial services but across multiple sectors, there must be consistent and appropriate regulatory oversight, says the paper.

Afme also highlights the importance of interoperability to support a level playing field so that, if data is being shared outside the financial services sector, it is still subject to appropriate requirements and remains high quality and fit for purpose. In addition, any harmonisation would need to occur across EU Member States, while also being complementary to global frameworks.

The paper says that compensation is important in order to ensure fair allocation of costs across the data value chain and to safeguard fair competition. Finally, Afme calls for clear liability provisions to provide legal clarity with respect to the access, processing, sharing, and storage of data.

Elise Soucie, associate director, technology and operations, Afme, says: "Open Finance in the EU’s data economy will transform the way banks share data with each other, and also with third-party providers, such as fintech companies. For financial services this could mean that access to new, broader data sets could enhance the way banks operate and encourage innovation across sectors.

"But with innovation comes potential for unintended consequences such as sharing data with participants in other sectors who may already have a dominant share of both individual and corporate data and which could lead to monopolies and the exploitation of data."

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