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Data sharing in financial services
Five techniques to enhance privacy and confidentiality
In financial services, data sharing is fraught with tension. On the one hand, it can help fight transaction fraud, deliver more personalized advice to customers, and detect the buildup of systemic risks. On the other hand, customers are increasingly wary about how their data is stored and used—and, as reforms like the EU’s General Data Protection Regulation and the UK’s Open Banking show, regulators are inclined to agree.
That, in a nutshell, highlights the competing obligations surrounding privacy: there’s value in sharing data, but protecting privacy and confidentiality is a critical responsibility of any financial institution.
Since 2015, Deloitte has worked with The World Economic Forum to gauge the forces of change in financial services. In the most recent phase—which will be reported in the forthcoming report Navigating uncharted waters: A roadmap to responsible innovation with AI in financial services—we discovered these competing obligations surrounding privacy and data sharing. This in turn led to a deeper examination of ways to unlock the value that shared data can provide without threatening privacy and confidentiality.
Performance magazine issue 31, January 2020
Performance is a triannual digest, dedicated to investment management professionals, which brings you the latest articles, news and market developments from Deloitte’s professionals and clients.