You Are What You Pay: Personal Profiling with Alternative Payment Data and the Data Protection Law

Artikel

The global trend toward cashless payment started well before the corona pandemic. Along with it, investors in the data-driven tech industry are inspired by the promise of targeted behavioral scoring based on big data. It seems economically tempting to combine these two trends by using all data generated by the payment services to create personal profiles. However, this business model conflicts with the individual's right of in- formational self-determination and raises questions regarding inaccuracies, discrimination, and the non-transparency of the algorithms underlying these profiles. Our article provides a short overview over the recent economic developments in the financial service industry and a legal assessment in light of the GDPR. Not everything that is feasible with big data scoring using alternative payment data is legally allowed in Europe. Nevertheless, traditional banks could have the opportunity to improve their internal credit scoring systems and use individual customer profiles to further market their financial services.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Journal: Vierteljahrshefte zur Wirtschaftsforschung ; ISSN: 1861-1559 ; Volume: 89 ; Year: 2020 ; Issue: 4 ; Pages: 73-88

Classification and Topics

• Classification: Wirtschaft ; Financial Institutions and Services: General ; Pension Funds; Non-bank Financial Institutions; Financial Instruments; Institutional Investors ; Financial Institutions and Services: Government Policy and Regulation
• Subject: alternative payment data ; personal profiling ; credit scoring ; GDPR ; data protection law

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Affeldt, Pauline ; Krüger, Ulrich
• Event: Veröffentlichung
• (who): Duncker & Humblot
• (where): Berlin
• (when): 2020

Further information

• DOI: doi:10.3790/vjh.89.4.73
• Handle: http://hdl.handle.net/10419/270515
• Last update: 10.03.2025, 11:43 AM CET