The financial authorities announced the revised guidelines on MyData services in financial sectors on July 29. The revisions intend to (a) achieve an appropriate balance between consumer convenience and protection over provision of consumer data, (b) draw up measures to protect consumers from excessive competition and (c) establish rules on informed consent to guarantee consumer’s data privacy rights.
In order to provide sufficient time for system tests, the revised guidelines also postpone the standardized API usage requirement from the initially planned date of August 4 to later this year.
I. Safeguards for 3rd party and other sensitive information
The scope of privacy data usage is limited to the user of MyData service and for the purpose of providing analysis services about the user. The usage of privacy data for marketing or other purposes that may raise concerns about privacy violation will be prohibited.
II. Informed consent system
MyData businesses should establish an informed consent and data transfer system that is suitable for mobile environment and easy to understand for consumers. The guidelines also provide rules on essential consent items, etc.
III. Consumer protection from excessive competition
MyData businesses should provide a notice about the user guideline before users sign up for their services while refraining from engaging in excessive marketing events.
IV. Schedule for standardized API usage
(1st Stage) MyData businesses and data providing entities should complete the process of setting up standardized API and carrying out tests by November 30, 2021.
(2nd Stage) MyData businesses will begin offering services to consumers through standardized API starting from December 1, 2021.
(3rd Stage) MyData businesses will offer services only through standardized API from January 1, 2022.
The financial authorities will closely monitor and manage the status of API setup at data providing institutions according to the schedule while continuing to work on improvements to protect consumers and promote fair competition.
* Please refer to the attached PDF for details.