Data on the banking sector: sources of access

Access to financial and banking data is revolutionising the sector, promoting transparency, financial inclusion and innovation in economic services. However, the management of this data faces regulatory challenges in balancing openness with security and privacy.

For this reason, there are different ways of accessing this type of data, as we will see below.

Open Banking and Open Finance versus Open Data.

These terms, although related, have important differences.

The term Open Banking refers to a system that allows banks and other financial institutions to securely and digitally share customer financial data with third parties. This requires the customers' express approval of the data sharing conditions . This consent can be cancelled at any time according to the customer's wishes.

Open Finance, on the other hand, is an evolution of Open Banking which embraces a broader range of financial products and services. When we talk about Open Finance, in addition to banking data, data on insurance, pensions, investments and other financial services are included.

In both Open Banking and Open Finance, the data is not open (Open Data), but can only be accessed by those previously authorised by the customer. The exchange of data is done through an application programming interface or API , which guarantees the agility and security of the process. All of this is regulated by the European directive on payment services in the internal market (known as PSD2), although the European Commission is working on updating the regulatory framework.

• Applications of Open Banking and Open Finance:

The purpose of these activities is to provide access to new services based on information sharing. For example, they facilitate the creation of apps that unify access to all the bank accounts of a customer, even if they are from different providers. This improves the management and control of income and expenditure by providing an overview in a single environment.

Another example of use is that they allow providers to cross-check information more quickly. For example, by allowing access to a customer's financial data, a dealer could provide information on financing options more quickly.

Open data platforms on banking

While private banking data, like all types of personal data, is strictly regulated and cannot be openly published due to privacy protection regulations, there are sets of financial data that can be freely shared. For example, aggregate information on interest rates, economic indicators, historical stock market data, investment trends and macroeconomic statistics, which are accessible through open sources.

This data, in addition to boosting transparency and confidence in markets, can be used to monitor economic trends, prevent fraud and improve risk management globally. In addition, fintechcompanies, developers and entrepreneurs can take advantage of them to create solutions such as financial analysis tools, digital payment systems or automated advice.

Let's look at some examples of places where open data on the banking and financial sector can be obtained.

International sources

Some of the most popular international sources are:

• European Central Bank: provides statistics and data on euro area financial markets, through various platforms. Among other information, users can download datasets on inflation, bank interest rates, balance of payments, public finances, etc.

• World Bank: provides access to global economic data on financial development, poverty and economic growth.

• International Monetary Fund: provides simplified access to macroeconomic and financial data, such as the outlook for the global or regional economy. It also provides open data from reports such as its Fiscal Monitor, which analyses the latest developments in public finances.

• Federal Reserve Economic Data (FRED): focuses on US economic data, including market indicators and interest rates. This repository is created and maintained by the Research Department of the Federal Reserve Bank of St. Louis.

National sources

Through the National Open Data Catalogue of datos.gob.es a large number of datasets related to the economy can be accessed. One of the most prominent publishers is the Instituto Nacional de Estadística (INE), which provides data on defaults by financial institution, mortgages, etc.

In addition, the Banco de España offers various products for those interested in the country's economic data:

• Statistics: the Banco de España collects, compiles and publishes a wide range of economic and financial statistics. It includes information on interest and exchange rates, financial accounts of the institutional sectors, balances of payments and even household financial surveys, among others.
• Dashboard: the Banco de España has also made available to the public an interactive viewer that allows quarterly and annual data on external statistics to be consumed in a more user-friendly way.

In addition, Banco de España has set up asecure room for researchers to access  data that is valuable but cannot be opened to the general public due to its nature. In this sense we find:

• BELab: the secure data laboratory managed by the Banco de España, offering on-site (Madrid) and remote access. These data have been used in various projects.
• ES_DataLab: restricted microdata laboratory for researchers developing projects for scientific and public interest purposes. In this case, it brings together micro-data from various organisations, including the Bank of Spain.

Data spaces: an opportunity for secure and controlled exchange of financial data

As we have just seen, there are also options to facilitate access to financial and banking data in a controlled and secure manner. This is where data spaces come into play, an ecosystem where different actors share data in a voluntary and secure manner, following common governance, regulatory and technical mechanisms.

In this respect, Europe is pushing for a European Financial Data Facility (EEDF), a key initiative within the European Data Strategy. The EEDF consists of three main pillars:

• Public reporting data ("public disclosures"): collects financial reporting data (balance sheets, revenues, income statements), which financial firms are required by law to disclose on a regular basis. In this area is the European Single Access Point (ESAP)initiative, a centralised platform for accessing data from over 200 public reports from more than 150,000 companies.

• Private customer data of financial service providers: encompasses those data held by financial service providers such as banks. In this area is the framework for access to financial data, which covers data such as investments, insurance, pensions, loans and savings.

• Data from supervisory reports: for this type of data, the supervisory strategy, which covers data from different sectors (banks, insurance, pension funds...) has to be taken into account in order to promote digital transformation in the financial sector.

In conclusion, access to financial and banking data is evolving significantly thanks to various initiatives that have enabled greater transparency and that will encourage the development of new services, while ensuring the security and privacy of shared data. The future of the financial sector will be shaped by the ability of institutions and regulators to foster data ecosystems that drive innovation and trust in the market.