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The EU is moving to exclude Meta, Apple, Google and Amazon from a new system for sharing financial data that is designed to enable development of digital finance products for consumers.

Such a decision would hand a significant boost to banks in their efforts to fight off a competitive threat from Big Tech groups, which they fear will use their data to disintermediate them from their customers while extracting much of the value of knowing people’s spending and saving behaviour.

After more than two years, negotiations on the Financial Data Access (Fida) regulation are entering the final stages in coming weeks, with Big Tech groups facing almost certain defeat, according to diplomats.

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  • plyth@feddit.orgEnglish
    73·
    8 days ago

    Big Tech can just buy a bank to gain access. It’s more likely that it prevents new competitors for the established banks.

    • SorryImLate@piefed.socialEnglish
      14·
      8 days ago

      Buying a bank would only give them access to their own client’s data, plus they would be subject to the stringent regulatory requirements of the banking industry. Banks have their faults but data privacy and security is not one of them.

      • plyth@feddit.orgEnglish
        18·
        8 days ago

        Google and Facebook don’t sell data, they sell ads. They take data privacy serious, because that prevents others from having it. They will find a way to use the banking data that complies with the regulations.

        If they want most of the banking data, they can give their bank the exposure that makes it the default bank.

        • SorryImLate@piefed.socialEnglish
          5·
          8 days ago

          Uh huh. I guess that depends on your definition of the word sell. In my view, making money by sharing my ad profile is selling my data. It might not be the raw, unprocessed data, but that doesn’t matter. No EU bank would be allowed to sell third-party ads on the web to their customers based on their personal profiles.

          They also can’t “make their bank the default bank”. Unlike the digital world, the banking industry is very well established with lots of competition and money. The big banks have no motive to sell to big tech, and such a big transaction would draw a lot of attention. Anti-American sentiment is high in Europe. Does any bank really want to risk being in the headlines for allowing American tech companies in where regulators explicitly excluded them? Bank runs is how banks collapse.

          • plyth@feddit.orgEnglish
            1·
            8 days ago

            making money by sharing my ad profile is selling my data

            I agree. My point is that they will find a way to do that with the banking data in the same way that they technically don’t share the tracking data.

            The big banks have no motive to sell to big tech

            The next banking crisis will come with a struggling bank that can be bought.

            • SorryImLate@piefed.socialDeutsch
              2·
              7 days ago

              The next banking crisis will come with a struggling bank that can be bought.

              I hope you’re wrong but time will tell.