Russia: Public consultation on Bank of Russia report on systemic risks of Big Data in the financial sector opens

On 10 December 2021, the Bank of Russia published a report outlining the advantages and risks of using big data in the financial markets and opened a public consultation regarding the report's findings and the proposed regulations. The first section highlights the positive effects that some technologies and specifically the use of big data have, such as improving the quality of services provided, reducing costs, advancing financial performance and combating money laundering. The report also outlines the systemic risks that the use of big data carries, including incorrect assessment of the borrower's financial condition, consumer discrimination, violation of competition, concentrations of data providers that could restrict competition and an increased risk of data breaches. In addition, the report lists possible approaches that could be taken to regulate the use of big data in the financial sector, namely the development of ethical principles for data processing, elaboration of risk management strategies and implementing better systems for data protection. The stakeholders are invited to send their comments on the report until 15 February 2022.