Press Statement from Frances Fitzgerald MEP
Monday 23rd October 2023
Irish customers must be able to have confidence that their personal data is not used without their permission - Fitzgerald
Dublin MEP Frances Fitzgerald appointed as negotiator for new EU law on financial data rights
Dublin MEP Frances Fitzgerald has been appointed as one of the European Parliament’s negotiators on a new law to protect European customers’ financial data. The new Framework for Financial Data Access law will give Irish customers and customers across Europe more control over how their personal financial data is used and shared by companies providing services in the area of pensions, lending, investments, insurance, and others.
The proposed new regulation will establish a framework for responsible access to the individual customer data that is collected by financial services companies on customers in the course of their work (also referred to as “open finance”). This data may shared with other firms to develop and offer new or bespoke financial products or services to customers. The regulation aims to ensure that all consumers have effective tools to protect and control the use of their financial data by such companies. To date, this rapidly growing sector of digital finance has largely been unregulated.
Frances Fitzgerald MEP said, “In today’s world, data rights are crucial. Companies can use data to analyse consumer habits, to compete, and develop new or bespoke financial services to individual customers. While this can allow for innovation, which means customers have more choice of new services and access to better pension options, better returns on savings and investments, and more cost-effective insurance options, it also presents a risk to people’s personal data and privacy.
“That is why I will be using my position as negotiator to guarantee that there are effective safeguards and controls in place to protect people’s rights to their personal data, including their right to stop their personal data being used by companies against their will. It is also vital that people who do not wish for their personal data to be used to shared are not excluded from accessing financial services such as pensions or savings options.
“This will be the first time that such a framework will be developed for the world of digital finance. Developing a framework that promotes innovation is crucial for our continued economic development. Customers want more choice and better value and an innovative framework can provide that. However, this must be balanced by an absolute respect for everyone’s personal data and strong rights and protections for individual customers to protect their data or deny the right for financial services firms to share this data.
“As our economy becomes more and more digitised, data rights and data privacy will become even more important. That is why it is crucial that we get this new framework right. I will be working as a negotiator to do just that and to ensure people can have confidence in how their data is being used.”
ENDS
Contact:
michael.ward@europarl.europa.eu
