Building Block 4 – Data
PROGRESS ALONG THE NEW ROAD
- Data is increasingly viewed as an asset – perspectives on its use differ widely.
- Management of data is the new competitive frontline for banks and fintechs.
- Emerging data asymmetry is storing up new systemic pressures.
Data is the enabler of next wave fintech. Applying its insights enables the process of continual renewal that organisations need today to stay relevant. An open approach to sharing it will ensure they can leverage the future opportunities of open data. And access to sufficient quantities of it will determine the effectiveness of advanced technologies like AI for a new generation of automated financial services.
Its management is also the key to incumbent banks’ most valuable asset – customer trust. A decade after the financial crisis trust in banking has proved surprisingly resilient. High profile data breaches and the impact of social media on public life have sharpened customer attention on its importance. consumers realise there’s no such thing as ‘free’ in the digital world.
When first announced, GDPR – Europe’s new rules on data – looked like an own goal by European regulators by weakening the region’s digital industries that were already way behind giants in Asia and the US. By the time it arrived in 2018, it proved remarkably timely.
“There’s a counter force against unfettered use of customer data that is changing the landscape and banks are not in bad shape – as they’re generally more cautious about how they do it. GDPR has become a bit of a leveller for banks,” says Alex Mifsud, head of strategy at Ixaris Technologies.