Thread by @WolfieChristl

According to the German Consumer Federation, the EU's #psd2 directive turned bank transaction data into a commodity and created a 'pipeline' for data flows to fintechs and other parties without much oversight.

Statement and report:
vzbv.de/pressemitteilu…
vzbv.de/sites/default/…

While banking regulators are pushing for competition, oversight about data protection and consumer privacy is missing.

The VZBV is thus calling for stricter rules, better enforcement, the #psd2 evaluation should focus on data protection.

Position paper:
vzbv.de/sites/default/…

Specifically, the sphere of licensed #psd2 intermediaries and API providers who may share data with non-licensed parties raises many questions.

They also warn that 'consent' may become an illusion when sharing bank transaction data with e.g. landlords or telcos becomes the norm.

I'm afraid #psd2 is a disaster in the making.

Creating a market for financial profiling, especially if not effectively regulated at all, may once again shape a whole industry in a way we regret later. But as soon as it's there it will be incredibly difficult to make a change.

Financial profiling affects the lives of many, especially of the disadvantaged.

If we don't get #psd2 right, we'll soon see a large number of predatory financial data firms, expanded credit scoring and a further consolidation of risk+marketing surveillance.

Also, big (fin)tech.

I think #psd2 (and #openbanking globally) deserve much more attention.

It's about competition, data/consumer protection, actually about society at large.

I feel like the only ones who care are industry lobbyists. Thus, I find the German consumer federation's report very worthy.