Banks are lobbying Brussels over a sweeping overhaul of the EU’s privacy rules, which would make it harder for lenders as well as technology groups to collect and keep personal data. Bankers warn that the planned law, which includes the “right to be
The draft EU privacy regulations will make it more difficult for banks to collect and keep personal data. This will affect their ability to detect fraud, grant loans automatically online, and provide online services.
Pertinently, the draft regulations would require a customer’s express consent to use their data. Currently, banks apply a balance of interest test, in which the bank could use the data for a specific banking purpose if the benefit outweighed the harm to the customer.
According to the article, the fines from breach the draft regulations are estimated to be 5 percent of the annual turnover for banks.