EU Banks Urged to Strengthen Data Control
The chair of supervision at the Netherlands Bank (DNB), Steven Maijoor has asserted that banks within the European Union (EU) need to take a more robust control over their data. This move, according to Maijoor, is vital to reducing dependencies on non-European digital infrastructure providers, a situation which has been identified as a source of systemic risk.
Steven Maijoor
The Dominance of Non-European Digital Infrastructure Providers
During a fintech and regulation conference held in Brussels on February 3, Maijoor pointed out that the EU’s financial sector is still heavily reliant on non-European digital infrastructure providers. These “hyperscalers”, as they are often referred to, include tech giants such as Microsoft, Amazon, and Google. The over-reliance on these companies by EU banks is viewed as a source of systemic risk.
Collaboration as a Key to Reducing Dependencies
Maijoor believes that for EU banks to effectively strengthen their control over data and reduce this systemic risk, collaboration is necessary. He suggests that the tech sector, finance industry, and public sector need to work together. With this joint effort, EU banks can effectively decrease their dependence on hyperscalers and in turn manage their data more efficiently.
The Importance of Data Control in the Banking Sector
Control over data in the banking sector is crucial. It not only enables banks to better understand their customers and provide personalized services, but it also helps in risk management and regulatory compliance. With the increasing digitization in the banking sector, data control has become even more paramount. Banks that fail to control their data effectively are likely to face challenges in terms of operational efficiency, customer satisfaction, and regulatory compliance.
Conclusion
As the chair of supervision at DNB, Maijoor’s call for EU banks to strengthen their control over data is a significant one. It emphasizes the need for the banking sector to take data control more seriously, not only for the benefit of their operations but also for the overall stability of the financial system. It also underscores the importance of collaboration among different sectors in achieving this goal.
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