Research on Regulation of Personal Financial Data Sharing in Open Banking

Abstract

Open banking is a platform-based and ecological business model based on data sharing, which has the characteristics of "disruptive innovation". The value of data is mainly reflected in the fusion and mining on the basis of sharing, and the essence of open banking is data sharing. As a new key production factor driving the development of financial industry in the era of digital finance, personal data still has many challenges in the practice of open banking, such as data leakage risk, data sharing authorization risk, correlation risk of data sharing with third-party institutions, and lack of supervision risk. Based on the word frequency statistics and comparative analysis with non-bank financial institutions, the empirical study shows that China’s banking industry has significantly increased the construction of open banking since 2018, among which banks with poor profitability and high risk level regard open banking as an important direction of transformation and upgrading. However, open banking also brings new risks such as data leakage and network security and the empirical results also confirm that open banking construction significantly improves the probability of bank violations. Combining with the existing three types of compulsion, such as Self-regulatory, Self-regulatory l and boost the regulatory, this paper argues that it is suitable for our country to adopt the boost regulatory mode.