Page 26 - May 2018 Disruption Report Flip Book

REGULATORY MOAT JANMUAAYRY20128018
data. This is not at all an easy task for banks that have legacy core banking systems. Data in these systems tends to be silo’d and not set up for traceability.
EU / Asia / Americas =
RISING REGULATORY FOCUS ON DATA COLLECTION & SHARING
Rising Regulatory Focus on Data Collection + Sharing...
General Data Protection Regulation
Enacted = 5/25/18
Data Privacy Laws
Enacted in Past 10 Years Developing (2018)
Act on Protection of Personal Information
Enacted = 5/30/17
Privacy Act of 1974
Enacted = 12/31/74
Personal Information Protection Act
Enacted = 09/30/11
Source: Wikimedia, USA Congress, EU, Japan Government, South Korea Government, Argentina Government.
Note: Argentina proposed a 2017 draft amendment to the Personal Data Protection Act that would strengthen current regulation and align with most GDPR requirements. Japan enacted an amendment to its Act on Protection of Personal Information that went into effect on 5/30/17. All EU countries grouped due to passage of EU-wide GDPR laws.
Across Europe, we believe the regulatory focus on data will become more intense when GDPR takes effect in May 2018. The General Data Protection Regulation (GDPR) is based on the notion that individuals have a “fundamental human right” to own and use their personal data as they see fit. It potentially imposes severe financial penalties, up to four times global annual turnover on organizations which misuse personal data.
These new regulations are not merely a cost and operational burden on banks: in some cases, they also increase the risk of disintermediation. For example, in Europe, Payment Services Directive 2 (PSD2) requires banks to share customer data, with the customer’s consent, with third parties. And it also allows third parties to initiate payments from a customer’s bank account to a merchant’s bank account.
As such, PSD2 increases the chance that a third party could insert itself between banks and their customers by offering those customers a better user experience and superior
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