Opinion today: Banks jump on the fintech bandwagon

This article is from today’s FT Opinion email. Sign up to receive a daily digest of the big issues straight to your inbox.

The US Senate banking committee will take up the subject of data sharing among technology companies and big banks this week. The hearings will be a first opportunity to review a report from the Treasury, which talks approvingly of the idea, suggesting data-sharing will create efficiency and scale, and lower consumer prices.

Rana Foroohar will be watching with trepidation. She worries the Treasury is in danger of skating over the systemic risk and predatory pricing that could emerge if the world’s largest technology companies and the biggest banks on Wall Street share consumer data. This would hardly be surprising, given the Trump administration’s consistently deregulatory stance, but it could be bad news for consumers, she notes. We may be comfortable with the idea of companies knowing our spending habits and holiday preferences, but do we really want to hand them access to our entire financial histories?

Wolfgang Munchau advises his fellow EU citizens living in Britain to prepare for the worst. In the event of a hard, no-deal Brexit, the long-term status of Europeans in the UK will be uncertain. It would be wise to ignore official advice and apply for permanent residence now.

Zhou Bo argues that China is reshaping the international order. The global economic pie is being divided up in more equitable ways, and the east’s share — led by China and India — is increasing rapidly. US president Donald Trump’s proposed tariffs will not change that.

Rajiv Shah warns that our global food production system is causing harm to us and our planet. The president of the Rockefeller Foundation notes that rising obesity in Africa reflects a misguided emphasis on producing cereal grains and protein to maximise profit at the expense of public health. 

Devorah Baum doubts she is alone in feeling fed up of being spoken for and about during a painful political summer for British Jews, thanks to the protracted row over anti-Semitism in the Labour party.

What you’ve been saying

The untimely D-Mise of an amateur band — letter from Adrian Carr 

In an otherwise excellent article on the financial crisis I do have to call out Gillian Tett on one fact. The name of the band at the 2007 Barcelona conference was “D-Leverage” rather than “Da Leverage”. As well as being a more culturally appropriate play on words for a bunch of middle-aged white guys, this was a passing nod to 90s bands of the time (D:Ream, Deee-Lite). Regretfully the deleveraging we witnessed in 2008 and beyond proved to be as painful as D-Leverage’s musical abilities.

Comment by Nelson in response to EU citizens in Britain should prepare for the worst

Perhaps the major justification people seemed have for voting for Brexit was freedom of movement. Yet only roughly 4 per cent of of the UK’s population is from the EU and virtually every one of them is a tax payer, and probably at a rate significantly higher than the national average. The majority work in services, healthcare and the like (where we know there is a staffing and skills shortage) and yet they do not have, not have they asked for, the right to vote. As a Brit that seems a good deal to me. Surely we should be grateful to have (so relatively few) of our EU cousins living among us? More to the point, what will happen when those teachers, waiting staff, nurses, doctors, engineers plumbers etc leave? 

Flock mentality fails to inspire birds — and people — letter from Eric J Redemann

I have spent a lot of time with psittacine birds and their behaviour makes a fascinating allegory for the behaviour of big companies. Individually, the parrot-like species are as brightly intelligent as two to three year-old humans, but put them into groups of maybe five or more and they lose half their IQ to the labours of flock behaviour. It is groups that are dolts, not individual humans. The rubric about “the wisdom of crowds” is complete rubbish that misunderstands the laws of large numbers. Crowds are dangerously stupid, but if you get enough people together (and are lucky) there might be one or two with real brilliance and insight.

Today’s opinion

Can macro policy easing still rescue China?
Assets have slumped on misplaced fears that a recession is likely

Rising obesity in Africa reflects a broken global food system
The industry has maximised production and profit at the expense of public health

Banks jump on to the fintech bandwagon
Data sharing between financial institutions and tech companies puts consumers at risk

China is reshaping the international order
The world has never been unipolar and power is shifting east

EU citizens in Britain should prepare for the worst
If there is a hard Brexit, the status of Europeans in the UK will be uncertain

A painful summer has cast British Jews in an uncomfortable role
I doubt I’m alone in feeling little comfort in becoming the object of constant debate

Back off, millennials: boomers still belong at work
You are not past it because you are old nor clueless if you are young

With a Brexit deal in sight, Britain is entering a no man’s land
Any deal with the EU will only cover the UK’s withdrawal, not its future relationship

FT View

The FT View: A compromise solution to the Irish border conundrum is in sight
‘De-dramatising’ checks after Brexit can secure a withdrawal deal

The FT View: Shinzo Abe has earned time to draw his third arrow Term extension for Japan’s prime minister must not be an excuse for economic inaction

The Big Read

The Big Read: Ronaldo: Why Juventus gambled €100m on a future payday
The Italian club will pay up to €340m for the star striker over the next four seasons in the hope he will turn it into a global brand