Data Cooperatives: A New Paradigm for Ethical Data Governance

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Introduction

The rapid rise of financial technology (fintech) is reshaping the global financial landscape, breaking down barriers and providing essential financial services to populations that have traditionally been excluded from mainstream banking (Truong, 2016). According to Arslanian and Fischer (2019), fintech has enabled millions of people, particularly in underserved and remote regions, to access digital payments, loans, savings, insurance, and investment opportunities – services that were once out of reach due to geographic, economic, or social constraints. However, this digital transformation is not without its challenges (Suryono, Budi & Purwandari, 2020). As fintech platforms become increasingly data-driven, concerns surrounding user data privacy, consent, transparency, and ethical governance have come to the forefront. These platforms rely on vast amounts of user data to personalize services, improve decision-making, and optimize business models, yet this reliance raises pressing questions about who owns this data, how it is used, and how well it is protected (Dorfleitner, Hornuf & Kreppmeier , 2023).

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