Comments to the Joint Committee of the European Supervisory Authorities on Big Data in Financial Institutions
The Joint Committee of the European Supervisory Authorities (ESAs) has requested comments on its discussion paper examining big data in financial institutions. The Center welcomes the discussion paper, which presents a largely accurate view of the benefits of big data in the financial sector. However, the Center is concerned that some basic economic tradeoffs (such as acceptances and rejections for loans and insurance service) as well as some benefits (such as fairer and more accurate distribution acceptances and rejections) are mistakenly characterized as risks, threats, or costs. The Center also believes that the so-called “right to be forgotten” of the incoming General Data Protection Regulation is neither a feasible nor effective means for ensuring fair and accountable use of algorithms in finance.