The Joint Committee of ESAs published the final report analyzing the impact of Big Data on consumers and financial firms. ESAs found that the benefits of Big Data outweigh the potential risks that Big Data pose to financial services consumers. ESAs also published a factsheet on Big Data to inform consumers of financial services about the impact of Big Data. The factsheet provides consumers with the information about the potential benefits and risks of the use of Big Data techniques; it also aims to raise awareness of the measures consumers can take if they experience issues in the use of Big Data.
The report concludes that Big Data brings many benefits for the financial industry and consumers of financial services. These benefits include more tailored products and services, improved fraud analytics, or enhanced efficiency of organizational internal procedures. However, financial services consumers should also be made particularly aware of some of the risks posed by Big Data. The risks identified by ESAs include the potential for errors in Big Data tools, which may lead to incorrect decisions being taken by financial service providers. Additionally, the increasing level of segmentation of customers, enabled by Big Data, may potentially influence the access and availability of certain financial services or products. Nevertheless, ESAs concluded that any legislative intervention at this point would be premature, considering that the existing legislation should mitigate many of the risks identified. This report results from a consultation that was conducted between December 2016 and March 2017. ESAs will continue to monitor developments in this area in the coming years and invite financial firms to develop and implement good practices on the use of Big Data.
Keywords: Europe, EU, Banking, Insurance, Securities, Big Data, Fintech, ESAs
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