Data-driven financial technologies and personal data protection law

Technology has long been used in financial services. Traditional banking systems have entered the digitization process with the developing technology. Today, the combination of large data sets produced by individuals and developing technology has transformed financial services. With the developing technology, the nature of the service that customers demand from service providers has changed. Customers who receive faster, more economical, and individual services have also requested these services from traditional banking. Financial technologies have emerged with the demands of customers and the integration of developing technology into the financial sector. With the change brought about by financial technology companies ("FinTek", "FinTech") and technological financial companies ("TekFin", "TechFin"), the financial sector has become data driven. Data and technology are driving the development of financial products and services. The presentation of products and services offered by traditional banks or financial service providers with an innovation, technology and customer-oriented approach is financial technology, and the companies that realize this are FinTech companies. TechFin companies, on the other hand, are big technology companies and enter the financial sector by using their own extensive customer, product, and service platforms. Their aim is to meet the financial needs of large customer bases with their own technology. The use of data in the financial sector creates advantages for both financial institutions and customers. Since financial institutions have more information about their customers, they can adjust their policies and products according to the expectations of their customers. Customers can benefit from personalized advice and services. While FinTech companies offer solutions to areas where traditional banking cannot keep up with the market demand, they also provide financial participation of individuals who cannot benefit from traditional banking services. In addition, they often offer cheaper and faster products and services in cooperation with banks. TechFin companies, which is called the entry of big technology companies into the financial sector, are the companies that are at a level to compete with banks with their capital, customer capacity and dominance in technological development, and are the companies that harbor the highest risk of monopolization in the market. Although these two types of companies have different characteristics, the most important common point is that the products and services they offer are data driven. The use of personal data in the financial sector brings some opportunities as well as various risks. The data that individuals share with or without awareness is the subject of many analyzes and algorithms. Large amounts of data can be processed and analyzed with Artificial Intelligence systems and machine learning algorithms. As a result of these processing and analysis activities, actionable inferences and insights can be created by companies. Companies make these inferences and predictions the center point of the decisions they make on their customers. The data processed by the algorithms used for predictive analysis in the financial sector should be accurate and up-to-date and should not contain elements of prejudice and discrimination. If the algorithms that decide about the future of individuals from their current socioeconomic status are not open to audit, transparent, and held accountable, it may cause the continuation of prejudice and discrimination and systematization of them by institutions. Considering the possible negative aspects of the collection and processing of personal data, it is very important to obtain the consent of the data subject clearly and as a result of being informed. However, when it comes to the content of such complex and technology-intensive transactions, it is difficult to fully inform the individual. The problem arises under which conditions the consent of the data subject is obtained, and whether personal data is exchanged for products and services. Within the scope of this study, personal data processing activities of financial institutions for commercial purposes were examined. Legislation review has been evaluated within the scope of the General Data Protection Regulation and the Second Payment Services Directive in terms of the European Union, and within the scope of the Personal Data Protection Law, the Banking Law and the Law on Payment and Securities Settlement Systems, Payment Services and Electronic Money Institutions in terms of Turkish law. With this study, the impact of technology on the financial sector, the new actors that have emerged with it, the conditions under which these new actors process data, analysis of the conflict between the decisions taken on individuals based on big data and predictive analysis with the concepts of rule of law, democratic society and freedom of the individual was examined.