Reciprocal Data Portability to Foster Financial Services Competition in the Open Banking System Era

Jamal Wiwoho, Umi Khaerah Pati, Anugrah Muhtarom Pratama

Abstract

This article analyzes the feasibility of incorporating reciprocal financial data into Indonesia's open banking system by studying its implementation in the United Kingdom and other countries. The methodology employed is conceptual, statutory, and comparative legal, utilizing data gathered from secondary legal sources. The study discovered that reciprocal data finance could be a supplementary measure to enhance data portability rights. This approach enables banks to provide compensation for access to account data, utilizing the concept of "paying by data". Indonesia should contemplate the adoption of data reciprocity alongside the portability rights outlined in Article 13 of the PDP Law. Subsequently, it can be configured inside the SNAP settings. Before proceeding with this development, it is crucial to establish Open banking in Indonesia by effectively balancing the goals of personal data rights and market competition. This circumstance will encourage Bank Indonesia to collaborate with other regulatory bodies, such as competition authorities, data protection regulators, and sector regulators. Despite potential differences in their objectives, this collaboration is necessary as reciprocal data portability initiatives may involve multiple regulatory domains.

Keywords

Open Banking; Reciprocal ; SNAP; Right To Data Portability

Full Text:

PDF

References

Affairs, D. for F. and E., & Committee, C. (2022). Summary of Discussion of the Roundtable on Data Portability, Interoperability and Competition. Organisation for Economic Co-Operation and Development (OECD).

Aristanto, E. (2020). Peranan Strategis Bank Pemerintah ( BUMN ) dalam Pemberdayaan Pelaku Usaha Mikro dan Kecil. Kertas Kerja, 1(1).

Ayunda, R. (2022). Personal Data Protection to E-Commerce Consumer: What Are the Legal Challenges and Certainties?. LAW REFORM, 18(2), 144-163. https://doi.org/10.14710/lr.v18i2.43307

Bajrektarevic, Anis H., U. K. P. (2022). Costumer Explicit Consent Under Indonesian Open Banking Regulations. Jambura Law Review, 4, 176–194. https://doi.org/10.33756/jlr.v4i2.15377

Bank of International Settlement. (2019). BIS Annual Report 2019-2020. Fresenius.Com, (December).

Barbu, C. M., Florea, D. L., Dabija, D. C., & Barbu, M. C. R. (2021). Customer experience in fintech. Journal of Theoretical and Applied Electronic Commerce Research, 16(5). https://doi.org/10.3390/jtaer16050080

Barr, M. S., DeHart, A., & Kang, A. (2019). Consumer Autonomy and Pathways to Portability in Banking and Financial Services. SSRN Electronic Journal. https://doi. org/10.2139/ssrn.3483757

BI. (2020). Blueprint Sistem Pembayaran Indonesia 2025.

Colangelo, O. B. & G. (2021, April). OPEN BANKING AND THE AMBIGUOUS COMPETITIVE EFFECTS OF DATA PORTABILITY. CPI Antitrust Chronicle, pp.1–6.

Competition and Markets Authority. (2020). Online platforms and digital advertising:Market study final report.

Cubillas, E., & González, F. (2014). Financial liberalization and bank risk-taking: International evidence. Journal of Financial Stability, 11(1). https://doi. org/10.1016/j.jfs.2013.11.001

de la Mano, M., & Padilla, J. (2018). BIG TECH BANKING. Journal of Competition Law & Economics, 14(4). https://doi.org/10.1093/joclec/nhz003

Deloitte. (2019). Blurring the lines: Creating an Open Banking data sharing ecosystem. Deloitte Ireland.

Di Porto, F., & Ghidini, G. (2020). “I Access Your Data, You Access Mine”: Requiring Data Reciprocity in Payment Services. IIC International Review of Intellectual Property and Competition Law, 51(3). https://doi.org/10.1007/s40319-020-00914-1

Diallo, S. Y., Herencia-Zapana, H., Padilla, J. J., & Tolk, A. (2011). Understanding interoperability. Emerging M and S Applications in Industry and Academia Symposium

2011, EAIA 2011 - 2011 Spring Simulation Multiconference.

Dinçkol, D., Ozcan, P., & Zachariadis, M. (2023). Regulatory standards and consequences for industry architecture: The case of UK Open Banking. Research Policy, 52(6). https://doi.org/10.1016/j.respol.2023.104760

Dwinarko, & Yasya, W. (2023). Becoming GoTo: Framing Analysis of Big Tech Corporate Merger in Indonesia. https://doi.org/10.2991/978-2-38476-016-9_18

Financial Conduct Authority. (2024). Potential competition impacts from the data asymmetry between Big Tech firms and firms in financial services. London.

Frost, J., Gambacorta, L., Huang, Y., Song Shin, H., & Zbinden, P. (2019). BigTech and the changing structure of financial intermediation. Economic Policy, 34(100). https:// doi.org/10.1093/EPOLIC/EIAA003

Ginsberg, M., & Malinowski, B. (1924). Argonauts of the Western Pacific. Economica, (11). https://doi.org/10.2307/2548181

Gouldner, A. W. (1960). American Sociological Review The Norm of Reciprocity: A Preliminary Statement. American Sociological Review, 25(2).

Graef, I., Husovec, M., & Purtova, N. (2018). Data Portability and Data Control: Lessons for an Emerging Concept in EU Law. German Law Journal, 19(6). https://doi. org/10.1017/s2071832200023075

Hicks, J. (2021). A ‘data realm’ for the Global South? Evidence from Indonesia. Third World Quarterly, 42(7), 1417–1435. https://doi.org/10.1080/01436597.2021.1901570

Institute of International Finance. (2018). RECIPROCITY IN CUSTOMER DATA SHARING FRAMEWORKS. Institute of International Finance, 2.

Jhanji, K. (2023). Unlocking the Potential of Open Finance in the UK. Boston.

Krämer, J., & Schnurr, D. (2022). BIG DATA AND DIGITAL MARKETS CONTESTABILITY: THEORY OF HARM AND DATA ACCESS REMEDIES. Journal of Competition Law & Economics, 18(2), 255–322. https://doi.org/10.1093/joclec/nhab015

Kranz, J., Kuebler-Wachendorff, S., Syrmoudis, E., Grossklags, J., Mager, S., Luzsa, R.,& Mayr, S. (2023). Data Portability. Business and Information Systems Engineering. https://doi.org/10.1007/s12599-023-00815-w

Lam, W. M. W., & Liu, X. (2020). Does Data Portability Facilitate Entry? International Journal of Industrial Organization, 69, 102564. https://doi.org/10.1016/j. ijindorg.2019.102564

Leong, E., & Gardner, J. (2022). Open Banking in the UK and Singapore: Open Possibilities for Enhancing Financial Inclusion. In NUS Law Working Paper No. 2022/011. https:// doi.org/10.2139/ssrn.4194256

Li, W. (2022). Between Incrementalism and Revolution: How the GDPR Right to Data Portability is Revamped by the EU and the UK Post Brexit. In E. Kosta, R. Leenes,& I. Kamara (Eds.), Research Handbook on EU Data Protection Law (pp. 572–599). Edward Elgar Publishing. https://doi.org/10.4337/9781800371682

Lopez, C., & Smith, B. (2021). Share the Data: Overcoming Trade-Offs in Tech Regulation.

SSRN Electronic Journal. https://doi.org/10.2139/ssrn.3843369

Lynskey, O. (2017). Aligning data protection rights with competition law remedies? The GDPR right to data portability. European Law Review, Vol. 42.

Mancini, J. (2021). Data Portability, Interoperability and Digital Platform Competition: OECD Background Paper. SSRN Electronic Journal. https://doi.org/10.2139/ ssrn.3862299

Martinelli, S. (2019). Sharing Data and Privacy in the Platform Economy: The Right to Data Portability and “Porting Rights.” In Regulating New Technologies in Uncertain Times. Information Technology and Law Series (pp. 133–152). Springer. https://doi. org/10.1007/978-94-6265-279-8_8

OECD. (2021). Organisation for Economic and Co-operation and Development, “Mapping out data portability initiatives, opportunities, and challenges. OECD, (321). https://doi.org/https://doi.org/10.1787/a6edfab2-en

OECD. (2023). OPEN BANKING PRIVACY AND OTHER CROSS- CUTTING ISSUES. OECD, (348), 37. https://doi.org/https://doi.org/10.1787/6c872949-en

OJK. (2023). Statistik Perbankan Indonesia - Januari 2023. Statistik Perbankan Indonesia, 21(2).

Open Banking Implementation Entity. (2019). Open Banking, Preparing for lift off. The Open Data Institute.

Organisation for Economic, & Co-operation and Development. (2021). Mapping out data portability initiatives, opportunities, and challenges. Retrieved from https://www. oecd.org/publications/mapping-data-portability-initiatives-opportunities-and- challenges-a6edfab2-en.htm

Petcu, D. (2011). Portability and Interoperability between Clouds: Challenges and Case Study. In Towards a Service-Based Internet (pp. 62–74). https://doi.org/10.1007/978-3-642-24755-2_6

Premchand, A., & Choudhry, A. (2018). Open Banking & APIs for Transformation in Banking. 2018 International Conference on Communication, Computing and Internet of Things (IC3IoT), 25–29. IEEE. https://doi.org/10.1109/IC3IoT.2018.8668107

Preziuso, M., Koefer, F., & Ehrenhard, M. (2023). Open banking and inclusive finance in the European Union: perspectives from the Dutch stakeholder ecosystem. Financial Innovation, 9(1). https://doi.org/10.1186/s40854-023-00522-1

Putu Samawati. (2020). Monopoli BUMN dalam Perspektif Hukum Persaingan Usaha. Tunggal Mandiri.

Rosadi, S. D., Noviandika, A., Walters, R., & Aisy, F. R. (2022). Indonesia’s personal data protection bill, 2020: does it meet the needs of the new digital economy? International Review of Law, Computers & Technology, 1–13. https://doi.org/10.1080/13600869.2022.2114660

Saleh, P. S. (2019). Legal Reasons Underlying Demonopolization by State-Owned Enterprises in Indonesia. Sriwijaya Law Review, 3(2). https://doi.org/10.28946/ slrev.vol3.iss2.126.pp124-136

Schneider, F., Maurer, C., & Friedberg, R. C. (2017). International organization for standardization (ISO) 15189. Annals of Laboratory Medicine, Vol. 37. https://doi. org/10.3343/alm.2017.37.5.365

Siciliani, P., & Giovannetti, E. (2019). Platform Competition and Incumbency Advantage under Heterogeneous Switching Cost — Exploring the Impact of Data Portability. SSRN Electronic Journal. https://doi.org/10.2139/ssrn.3508658

Smith, T., & Geradin, D. (2022). Maintaining a level playing field when Big Tech disrupts the financial services sector. European Competition Journal, 18(1). https://doi.org/10.1080/17441056.2021.1936401

Sullivan, C. (2022). The New Australian Consumer Data Right: An Exemplary Model for Open Banking. WIREs Forensic Science. https://doi.org/10.1002/wfs2.1458

Taekema, S. (2018). Theoretical and Normative Frameworks for Legal Research: Putting Theory into Practice. Law and Method. https://doi.org/10.5553/rem/.000031

The Development of Digital Payment Systems in Indonesia: a Review of Go-Pay and Ovo E-Wallets. (2020). Economic Alternatives, (3). https://doi.org/10.37075/ea.2020.3.03

ZACH, G. R. & A. (2020). DATA TO GO: THE FTC’S WORKSHOP ON DATA PORTABILITY. FEDERAL TRADE COMMISSION, p. 5.

Zander Arnao, D. D. (2023, July). Why the Internet Needs a Data Portability Ecosystem. Tech Policy Press.

Zufall, F., & Zingg, R. (2021). Data Portability in a Data-Driven World. In Artificial Intelligence and International Economic Law (pp. 215–234). Cambridge: Cambridge University Press. https://doi.org/10.1017/9781108954006.012

DOI: https://doi.org/10.20961/yustisia.v13i2.75786

Refbacks

  • There are currently no refbacks.