How does data pricing affect financial institutions’ decisions on cross-border flow of financial data

Abstract

With the in-depth development of digital economy, the cross-border flow of financial data has become an important force to promote the integration of global financial markets. As the core mechanism of data factor marketization, how data pricing affects the cross-border data flow decisionmaking of financial institutions is an urgent theoretical and practical issue to be further studied. This paper systematically sorts out the main models of data pricing in financial institutions, analyzes the whole process of crossborder financial data flow and its operation mechanism at the level of financial institutions, and then discusses the internal relationship between data pricing and each link of cross-border data flow. It is found that data pricing affects the cross-border decision-making of financial institutions through three paths: compliance cost-benefit trade-off, data value release incentive, and risk pricing mechanism, among which the compliance assessment before data departure is the most closely related to the two. This paper provides a theoretical reference for financial institutions to achieve cost reduction, efficiency increase and competitiveness improvement through scientific pricing strategy under the premise of ensuring compliance security.