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Welcome to the July edition of Neudata Tidbits for data providers.

This month, we explore the implications that Open Finance could have on American transactional data and highlight regulatory changes in China, Europe and the UK that could impact vendors.

OPEN FINANCE IMMIGRATES TO AMERICA
President Biden signed an executive order earlier this month to bring Open Finance to the US, a move that could upend the transactional data vendor landscape. Open Finance frameworks — which give consumers more control of who can access their transaction data — have already been introduced in the UK and EU. After implementation in those regions, the new laws created new vendors while weakening incumbents that relied on screen-scraping techniques. Industry experts expect some similar results in US if the regulation is enacted, but it won’t be for several more years.

Providers that currently screen-scrape should be aware that, once Open Finance frameworks are enacted, consumers will have to reauthorise access to their accounts through an API. This change may impact the panel size for many US transactional vendors, and could make historical comparisons of data hard.

Are you a US-based transactional data vendor that wants to update the buy-side about how US Open Finance regulations will (or won’t) affect your dataset? Reply to this email to let us know what’s going on!

CHINESE ESG DISCLOSURES
Chinese regulatory officials released updated guidelines on how listed companies should report environmental and social information in their annual and semi-annual reports. Companies must share several types of new information, including types and amounts of pollutants released by key polluting companies, as well as voluntary disclosures about ecological protection, carbon emission reduction, stakeholder protections, and poverty alleviation efforts.

The move will improve self-reported ESG data availability in China and echoes other similar moves among major world governments to compel companies to share ESG data with investors and the market.

China also introduced its new Data Security Law (DSL) this June, which signals a shift toward a more standardised and regulated process for Chinese data and disclosures.

EUROPEAN COMMISSION GREENLIGHTS EU-UK DATA TRANSFERS
On June 28, the European Commission adopted two adequacy decisions that allow firms to continue transferring consumer data between the EU and UK. The rules had been approved by the regulator in February, but faced one last bureaucratic hurdle which was cleared this week (and just in time — the temporary agreement put in place last year would have expired today!)

The decision gives an extra sense of security to data vendors that rely on these transfers, as the process of data exchange between EU and UK firms will remain the same for the next four years.

WHAT’S NEW IN DATA PROVIDER NEWS?
Vendors are providing insight on whether e-commerce food sales will continue outpace brick-and-mortar sales, particularly as mass vaccination programs continue to progress around the world and COVID-19 infection levels stabilise (at least in some regions).

There was an influx of online grocery and food deliveries during March 2020 that continued steadily into July 2021. Instacart and Walmart are the leading retailers in the online-grocery-delivery space, and although in-store visits have increased by 17.7%, this falls short of the 24% growth in e-commerce food delivery sales.

PEOPLE MOVES
Make sure you check out our people moves section, which recaps the latest job moves in the alternative data industry. If you want us to recap your new job or latest promotion, get in touch with Sondra at sondra@neudata.co.

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29 July: JP Morgan, Apptopia, Chainalysis and more

22 Jul: Nomad Data, Millennium, Everstell, and more

1 July: Preqin, AllianceBernstein, Millennium and more

Until next time,

Sondra & Saima