Full-text SSRN paper:
The Emergence of Financial Data Governance and the Challenge of Financial Data Sovereignty (1)
By Giuliano G. Castellano, Ēriks K. Selga, and Douglas W. Arner (2)
(Available at SSRN: Read Now)
The Fourth Industrial Revolution is marked by a profound digital transformation that reshapes our world through two main processes: digitalization and datafication. Digitalization converts analog information into digital formats, while datafication turns various aspects of life into digital data analyzed by advanced technologies, including Artificial Intelligence (AI).
As technology advances, it connects billions globally, enhancing communication and interaction. The COVID-19 pandemic further accelerated this shift, increasing our reliance on data, now viewed as a strategic asset alongside land and energy. This shift has prompted governments to assert control over data amid rising geopolitical tensions, leading to new data policies and governance frameworks that define the rights and responsibilities of stakeholders.
The financial sector, closely linked to data, has transitioned to a digital model over the past 50 years. This transformation raises critical questions about how data governance interacts with financial regulation in a globally interconnected economy.
In the paper, the authors, Castellano, Selga, and Arner:
Explore the Datafication of Finance: Understanding how finance has evolved into a data-driven industry;
Highlight Data and Finance Intersections: Discussing emerging data governance styles in the EU, U.S., and China;
Examine Open Banking Strategies: Investigating the regulation of personal financial data alongside broader financial data;
Identify Financial Data Governance Strategies: Analyzing approaches from the U.S., EU, China, and India that integrate finance with domestic data governance; and,
Address Fragmentation Challenges: Suggesting that robust transnational regulatory frameworks in finance may help navigate the complexities of data localization.
In summary, the digital transformation of finance enhances efficiency and accessibility while introducing new regulatory challenges. Understanding these dynamics is essential for navigating the complexities of a digitally globalized financial system.
(1) Castellano, Giuliano and Selga, Eriks and Arner, Douglas W., The Emergence of Financial Data Governance and the Challenge of Financial Data Sovereignty (August 26, 2024). Data Sovereignty: From the Digital Silk Road to the Return of the State (OUP 2023) 178-210, Available at SSRN: https://ssrn.com/abstract=4937954
(2) Connect with the authors on LinkedIn: Giuliano G. Castellano, Eriks K. Selga, and Douglas W. Arner.
(3) Related read: Data Sovereignty: From the Digital Silk Road to the Return of the State
(4) Related read: FinTech: Finance, Technology and Regulation
コメント