Financial services firms and fintechs aiming to enter the open banking market have been given a boost with the publication of a new report which aims to demystify the consent process across international markets.
The research, carried out by Equifax and the Open Data Institute, identifies and compares consent environments across the world, and outlines crucial information to consider and the consequences for breaking data consent rules in different regions.
The specific rules of how consent operates, such as duration, restrictions, and punishments are far from universal. Across the study, the researchers observed the time period for consent ranges from 90 days in Europe, to one year in Australia and New Zealand, with most countries not defining this crucial aspect at all.
Restrictions tend to be informed by the privacy laws of the different countries, which the report describes as "very idiosyncratic across cultures and legal landscapes".
While the UK and Australia have built "whitelists" for their open banking regimes to control which organisations can participate, Mexico and New Zealand have been less restrictive in this. Punishments can range both within and across countries depending on the severity of the violation.
Equifax president for Europe Patricio Remón said: “With open banking becoming a multi-national movement, the importance of research and developing understanding is paramount.
“Each country has its own set of tailored regulations, so it is vital that both consumers and financial institutions are able to understand the consent rules which apply to them and where the special circumstances, definitions and potential pitfalls lie. Our joint research alongside the ODI intends to shine a light on some of these issues and start discussions amongst the industry to help develop the understanding of data and consent in a global sense.”
The report can be downloaded for free from the Equifax website