The Joint Committee of the European Supervisory Authorities (ESAs) has unveiled a new public consultation paper, which touched on the use of big data by financial instruments, as well as the role played by regulation, according to an European Central Bank (ECB) statement.
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Big data is one of the fastest growing channels in the financial services industry, encompassing the availability and deployment of data, information technology, platforms and advanced analytics. However, to date, there has been a debate over the amount of regulation needed to properly supervise this space.
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Consequently, the ESA has given entities and individuals a chance to lend their perspective on the role of regulation and whether or not any further action may be needed. Big data is an extremely important fintech component, in part because of the innovation and solutions it yields, in tandem with behavioral analysis which is already being utilized around the financial industry.
The fundamental purpose of the consultation is for the ESAs to understand and grapple what the big data phenomenon tangibly means for consumers, the broader financial industry, and regulators – all are invited to share their views, part of a consultation lasting until March 17, 2017.
Currently, the acting EU legislation on data protection, competition and consumer protection noticeably are lacking in their definition of big data, creating a regulatory blind spot in need of addressing.