Yann Balgobin

Économie

Sujet de thèse : Three essays on the economics of privacy and financial information

Yann is a PhD student in economics. His research focuses on how data-driven profitability, financial intermediation and e-commerce are affected by the fact that consumers are increasingly concerned about the use of their personal data.

Privacy is a topic that has been largely discussed, especially the way firms collect and use personal information. Debates around these issues have also considered financial information (transactional data, consumption habits, credit data and so on).

Consumers are increasingly reluctant to share this type of data, including with their banks. This phenomenon can lead to a growing adoption of privacy-enhancing technologies (PETs). It can also develop the use of non-bank payment instruments: digital currencies, online payment solutions or mobile money for example. It also explains why cash is still widely used, as it allows transaction confidentiality. Limiting the supply of that kind of payment instruments potentially harms the development of e-commerce, as some consumers could renounce to some online purchases because they do not want to share too much information with their bank.

By increasingly incorporating personal data in their strategy (for example lending decisions), banks and other financial intermediaries could risk losing the trust of their customers and reinforce the adoption of non-bank payment instruments.  This would be a worrying trend for banks as the analysis of payment data is a central part in their activity, in particular concerning credit.

Research

Payment Instruments, Financial Privacy and Online Purchases (with D. Bounie, M.Quinn and P. Waelbroeck), Review of Network Economics, forthcoming, 2017.