Bank of Russia suggests ensuring equal access to data in financial market
As long as operators provide client data for a fee, all financial market participants should have equal and non-discriminatory access to this information – this principle was suggested by the regulator in its consultation paper analysing problems of access to information on retail clients in the financial market. If operators provide access to previously monetised data on similar commercial terms, this will promote efficiency of client data processing.
As is noted in the consultation paper, small and medium-sized financial institutions cannot currently access databases on individuals that could also enable them to receive quality profiles of their clients and assess credit risks, which is done by large market players. This is particularly so with data from alternative providers, including mobile network operators, social networks, fiscal data operators and others. This situation distorts the competitive environment.
The Bank of Russia suggests creating an infrastructure that would improve the efficiency of the communication with clients and the assessment of their creditworthiness and risks. According to the authors, to enhance the quality and efficiency of products intended for client profiling and assessing inherent risks, their developers should have access to as much data as possible. However, the Bank of Russia considers that operators should be obliged to provide accumulated data only if their owner has communicated them for a fee at least once. In this case, it is necessary to create equal conditions for accessing this information for other users in the financial market.
Data will be used strictly upon consumers’ consent, and all the measures suggested should fully take into account clients’ rights and interests, rely on their discretion and comply with the best information security standards.
The Bank of Russia believes that the implementation of these measures will eliminate the need for financial market participants to support technical capabilities for prompt processing of a vast array of data. They will also help market players to get ready-to-use products for communication with clients and assessing their creditworthiness and risks in single contact mode and on affordable terms.
Discussion participants are welcome to send their feedback on the consultation paper, including responses to the questions in the document, as well as suggestions and comments, to the Bank of Russia on or before 3 February 2019.