Welcome to the September edition of Neudata’s Tidbits for Data Providers.

This month, we discuss the regulatory enforcement action against App Annie, explore regulatory changes within alternative data and highlight developments within transactional data across India and Australia.

APP ANNIE
App data really dominated alternative data (and mainstream!) headlines this month. As a brief recap, the US Securities and Exchange Commission announced two weeks ago that it had settled an enforcement action against App Annie, an app data provider. It’s the first enforcement action that the SEC has specifically brought against an alternative data vendor so far.

Over the last few weeks, we’ve had several conversations with both fund managers and data providers about what the decision means for the industry as a whole. Many fund managers have told us that they’re ramping up compliance checks on vendors and are doubling down on how they document those compliance checks. Vendors have also assured us that the SEC doesn’t have any other open investigations on app data providers, but we’ll keep you updated if that changes.

REGULATORY UPDATE
On September 1, China’s Data Security Law came into full effect. What does that mean for Chinese vendors? Under the new law, cross-border data transfers must follow the guidelines set out by the law and failure to do so will result in penalties.

The European Commission also announced a decision on standard new contractual clauses (SCCs) for the transfer of personal data to countries outside the EU. European data firms need to use the new SCCs starting September 27, but transitional periods apply for current international data transfer agreements. To meet their obligations under GDPR, data companies will need to have made the appropriate changes in time.

TRANSACTIONAL DATA IN INDIA
A few weeks ago, India announced that it will introduce an Account Aggregator system, which allows eight banks to store consumer data. This decision will make it easier financial services firms to access online transactions and spending information from consumers in India. The majority of consumer spending data in this region is currently collected from email and web-scraping services, meaning that this new system could be the start of something big for new Indian transactional data sources.

AUSTRALIAN OPEN BANKING
Australian borders might not be open for international tourists yet, but its consumer banking data will be available starting in February 2022 after open banking is fully implemented in the country. The process has already started, with Commonwealth Bank, ANZ, NAB and Westpac sharing access to consumer data already (which includes debit and credit card accounts, as well as savings). By November, open banking should extend to residential, property and personal loans.

We anticipate it may be easier for data vendors to provide coverage of consumer transaction datasets in Australia going forward, which should be welcome news for data buyers frustrated by lack of supply in the country.

If you’re a vendor that’s planning to make use of the new open banking rules in Australia or India, please let us know at research@neudata.co. 

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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30 Sept: Citadel, Crux, Apptopia and more

16 Sept: RIWI, CoStar, Semrush and more

9 Sept: Ashler Capital, Yewno, Fidelity and more

Until next time,

Saima