What are the latest developments in data security and compliance regulations affecting financial institutions, and how should they prepare for these changes?

The regulatory space is undergoing significant changes during President Trump's second term. Some of these changes will undoubtedly impact alternative data providers and buyers. This report outlines key developments across various regulatory agencies and their potential impact on the data market.

The AI world was rocked the last week of January when DeepSeek, a Chinese AI company, unveiled its new large language model that rivals ChatGPT's capabilities but was developed at a fraction of the cost.

In late 2024, the Guangzhou Internet Court published the first judgment in China on the cross-border transfer of data under the Personal Information Protection Law (PIPL).

On 22nd October 2024, the Consumer Financial Protection Bureau (CFPB) released the final personal financial data rights rule. We provide a comprehensive overview that includes key differences, compliance timelines, definitions of involved entities and their compliance responsibilities, and potential impacts on the consumer transactional data industry.

Given recent events, it is likely worth diligencing data providers who source data from consumer reward programs and apps to ensure customers are getting what they were promised.

On 28 February, President Biden signed an executive order that aims to prevent countries of concern from procuring Americans' data, which may pose privacy, counterintelligence, blackmail, and other national security risks. The order directs the Department of Justice and other relevant agencies to create rules to restrict and control the sale or transfer of certain sensitive information.

The blog post makes us think that we will see FTC action connected to unique identifiers in the near future, whether hashing or otherwise. Data buyers and providers should monitor this and consider how any actions might affect them.

The bureau's proposed regulations will undoubtedly affect the alternative data space, and we believe these effects will be significant.

There has been a lot of focus on the CFPB's forthcoming open banking rule, but we'd like to call attention to the agency's plans to regulate data brokers under the Fair Credit Reporting Act (FCRA), which we believe will affect a variety of data providers.