Data Sovereignty in Financial Ecosystems: Towards a Cooperative Governance Model
Dong Wang · Lex localis - Journal of Local Self-Government · 2025
This paper introduces the Cooperative Data Sovereignty Governance Model (CDSGM) which functions as the main model to address data governance challenges developing in digital financial systems. Data sovereignty together with flow management and data control have become essential regulatory issues because capital and financial systems heavily rely on data-driven models. The combination of financial services and market operations and compliance frameworks has experienced revolutionary development because of datafication that FinTech innovation and digital transformation and regulatory changes have intensified. Financial data governance can address standards from three domains consisting of traditional financial rules and national data policy requirements and requirements from emerging Open Banking digital financial initiatives. The research conducts a comparative evaluation between three dominant data governance structures that start with the U.S. market-driven framework and follow with the EU rights-focused design before finishing with the Chinese state-directed data resource governance strategy. The CDSGM creates its governance solution by combining market performance with personal legal safeguards and regulatory requirements. An independent digital financial system needs reliable data exchange methods together with ethical enforceable standards to preserve long-term operation according to the model's framework for regulatory cooperation. The model design enables global integration while keeping national data retention without sacrificing financial development durability combined with universal accessibility.