Connect with us

Tech News

Financial Firms Lead the Way on Defining Appropriate Data Use

Avatar photo

Published

on

A group of senior financial services industry executives from firms including HSBC, Allianz, and Ant Financial, along with public sector and civil society leaders from Bank of Canada, Australian Securities and Investment Commission, IMF and University of Oxford, working with the World Economic Forum, today published principles for the appropriate use of customer data in Financial Services.

The principles provide goalposts for how banking, insurance and financial technology companies may approach questions around appropriateness, fairness, and transparency as they increasingly rely on the collection and use of customer data for business purposes. Policy makers can reference the principles as they continue to shape policy and regulation for the use of data.

“An uncoordinated proliferation of global data frameworks may prove counterproductive in the long run, resulting in further regulatory fragmentation with adverse knock-on effects for innovation and new business formation,” said  Matthew Blake, Head of the Forum’s Financial and Monetary Systems Initiative. “This is why the stakeholders convened by the Forum identified a need for global principles.”

The principles are:

Control – “Companies should be clear about their use of customer data, attain customer agreement to their customer data policies and, where appropriate, seek consent for specific uses.”

Security – “Companies should be held responsible and accountable for data security.”

Personalization – “Companies should be able to create individual customer-level profiles that allow them to provide differentiated customer services.”

Advanced analytics – “Companies should be able to comprehensively test, validate and explain their use of data analytics and models to customers.”

Portability – “Companies should, where appropriate, allow customers to access, download, transfer and/or permit third parties to manage data about them.”

The principles were presented in the White Paper The Appropriate Use of Customer Data in Financial Services which the Forum published today in collaboration with Oliver Wyman.

The rapidly growing significance of data in Financial Services provides both the industry and policy makers with tremendous opportunities as well as serious challenges. The role of data thus features prominently on the program of the Annual Meeting of the IMF/ World Bank Group from October 12-14 in Bali, Indonesia. The Forum will complement these discussions through its principles work and convene senior leaders from banks, finance ministries and central banks to discuss how to translate the principles into business practice and policy.

“This is best achieved by combining public regulation with private standards that represent the collective view of best practice and then buttressing them with a series of hard incentives that foster adoption and adherence,” says Mark Carney, Chairman of the G20’s Financial Stability Board and Governor of the Bank of England in the Forum White Paper.

“If the exchange of data for better services is to be a repeating win-win game, it is necessary to ensure that short-term gains do not generate new long-term risks or a general loss of trust between financial intermediaries and their customers,” said Carlos Torres Vila, CEO of BBVA and a contributor to the White Paper.

“Recent data breaches at large organizations, along with increasingly pertinent questions of trust around how customer data is being used or shared, have highlighted the urgency to review and define the appropriate use of customer data in financial services. The existing frameworks (e.g., GDPR, California) are necessary, yet insufficient. Implementing a shared set of principals will require a lot of work across the industry – and failing to do so could bring consequences ranging from overexposure to risk via in-activity to the stifling of innovation via overzealous regulation,” said Ted Moynihan, Global Head of Financial Services at Oliver Wyman.

Continue Reading
Comments

Tech News

Satya Nadella Says AI Golden Age Is Here and ‘It’s Good for Humanity’

Avatar photo

Published

on

The cutting-edge chatbot ChatGPT is capturing the world’s imagination. The new artificial intelligence site amassed 1 million users in just five days after its recent launch. It is but one of a dozen AI-driven so-called “killer apps” that will transform human productivity and the future of work.

ChatGPT answers complex questions via short prompts on a vast array of topics, and even writes lyrics and poetry. Underpinned by generative models such as GPT-3 and GPT-3.5, it is the most conspicuous example of technology dubbed generative AI.

Satya Nadella, Microsoft Chairman and CEO, in a session at the Annual Meeting, told Klaus Schwab, Founder and Executive Chairman, World Economic Forum, that a golden age of AI is under way and will redefine work as we know it.

“The future of work is not just about technology and tools,” he said. It’s about new management practices and sensibilities to the workplace.”

“Technology will provide more and more ways to bring people together,” he said. Public-private cooperation itself is moving virtual. The Forum’s Global Collaboration Village, for example, harnesses the power of the metaverse as a platform for collaborative, inclusive and effective international action.

“Microsoft is opening up access to new AI tools like ChatGPT,” said Nadella. “I see these technologies acting as a co-pilot, helping people do more with less.”

He provided two anecdotes of recent use cases of GPT technology. The first is an expert coder from Silicon Valley who improved their productivity by 80% by using the model to help write better code faster. The second was an Indian farmer who was able to use a GPT interface to access an opaque government programme via the internet, despite only speaking a local dialect.

“AI is just at the beginning of the S-curve,” said Nadella. The near-term and long-term opportunities are enormous, he added.

Looking ahead, he said Microsoft intends to lead on quantum computing. Microsoft has all the building blocks for a next-generation quantum computer. He said: “Microsoft will achieve quantum supremacy and aims to build a general-purpose quantum computer.”

On safety and security, Nadella said the operating principle for protecting critical infrastructure should be to assume the worst – “have zero trust”. “Safety and security needs to be included right at the design stage,” he said.

Sustainability is at the core of the business. “By 2050 Microsoft aims to not just be carbon-neutral but carbon-negative.” Last year the tech giant released “Cloud for Sustainability”, bringing together a growing set of environmental, social and governance (ESG) capabilities across the Microsoft cloud portfolio plus solutions from the firm’s global ecosystem.

Continue Reading

Tech News

Cybercrime Initiative to Boost Coordination between Private Sector and Law Enforcement

Avatar photo

Published

on

In an effort to tackle rising cybercrime levels, the World Economic Forum launched today at the Annual Meeting 2023 an initiative to map cybercriminal activities and identify joint public and private sector responses.

Building on the expertise of the Forum’s Partnership against Cybercrime, the Cybercrime Atlas initiative will provide a platform for leading cybercrime investigators, national and international law enforcement agencies, and global businesses to share knowledge, generate policy recommendations and identify opportunities for coordinated action to fight cyberthreats.

“The Cybercrime Atlas is a collaborative research initiative that gathers and collates information about the cybercriminal ecosystem and major threat actors operating today,” said Jeremy Jurgens, Managing Director, World Economic Forum. “The insights generated will help promote opportunities for greater cooperation between the private sector and law enforcement to address cybercrime.”

Cybercrime, such as the ransomware attack on Colonial Pipeline in May 2021 that caused US President Joe Biden to declare a state of emergency, is a threat to national security, public organizations and businesses of all sizes. Despite the amount of digital data collected on cybercriminal activities worldwide, the effort to fight it is often uncoordinated, disjointed and dispersed. The Cybercrime Atlas aims to map the cybercrime landscape, covering criminal operations, structures and networks.

First announced at San Francisco’s RSA Conference in June 2022, the Cybercrime Atlas has benefited from a year of pro bono analysis of 13 criminal groups by cybercrime investigators. Their approach and findings have been welcomed by law enforcement agencies.

“This initiative underlines the need for an enhanced multi-sector approach to combat the increasing cybercrime threat,” said Jürgen Stock, Secretary-General, International Criminal Police Organization (INTERPOL). “A global solution must include private sector insights to enable law enforcement to prevent, detect, investigate and disrupt cybercrime.”

The secretariat for the Cybercrime Atlas initiative will be hosted by the World Economic Forum for the next 2-3 years, with the support of Fortinet, Microsoft, PayPal and Santander, until it is sufficiently established to become an independent platform.

“The Cybercrime Atlas is an important initiative that will aid industry, law enforcement, and government agencies by providing a first-of-its-kind visibility to disrupt cybercriminals across their ecosystem and infrastructure,” said Ken Xie, Chief Executive Officer, Fortinet. “A global and unified effort will make it easier to get beyond the obstacles that shield cybercriminals.”

The Forum’s Partnership against Cybercrime initiative brings together a dedicated community to drive momentum for a public-private partnership to combat cybercrime.

“Cybercriminals work in the shadows and exploit vulnerabilities to inflict devastating attacks. The Cybercrime Atlas provides an important forum that brings the public and private sectors together to share actionable information and leverage cross-sector data, capabilities and expertise, crucial to disrupting cybercrime quickly, and at scale,” said Brad Smith, Vice-Chair and President, Microsoft.

“To mitigate and disrupt global cybercrime in today’s interconnected world, we need robust platforms to share intelligence and facilitate more meaningful institutional collaboration,” added Assaf Keren, Chief Information Security Officer and Vice-President, Enterprise Cyber Security, PayPal. “The Cybercrime Atlas represents a key next step in this work and an opportunity to unite global businesses, law enforcement and experts around concrete opportunities to protect the world’s citizens and their safety.”

“Given the global nature of cyberthreats, increasingly public-private collaboration is the best way to combat cybercrime,” said Dirk Marzluf, Group Chief Operating and Technology Officer, Banco Santander. “Organizations must look beyond their perimeter and combine efforts and resources with businesses, law enforcement and government.”

Continue Reading

Tech News

Landmark Reports on Future of Metaverse Focus on Interoperability and Value Creation

Avatar photo

Published

on

The Defining and Building the Metaverse initiative, launched by the World Economic Forum in May 2022, has released initial findings in two briefing papers – the first research of its kind on the metaverse. The initiative combines the expertise of more than 150 individuals in diverse sectors from the public and private sectors to understand and guide the future of the metaverse to become safe, interoperable and inclusive.

The governance briefing paper, Interoperability in the Metaverse, emphasizes the importance of removing friction for users. Interoperability is one strategy for allowing users to move across and between the physical and digital world with their relevant data, digital assets and identities. It can facilitate the free circulation of data and the secure exchange of information across systems.

The value creation report, Demystifying the Consumer Metaverse, focuses on consumer applications, foundational technologies and potential pathways to economic value and growth. The metaverse will require a diverse range of organizations to redefine their brands and change the way they monetize products and services to generate consumer value. The immersive, interactive nature of the metaverse will require businesses to move further away from the one-way delivery of products and services to becoming metaverse participants and providers. As consumer organizations experiment and incubate new business models for the metaverse, their work can inspire others and demonstrate the possibility of change in other industries.

The metaverse – an immersive, interoperable and synchronous digital world – represents the next era in the internet’s development. While its precise definition is still being debated, the metaverse is already forecast to become an $800 billion market in 2024. Unlocking the potential of this new field requires coordination of technology developers, corporations, governments and civil society. The World Economic Forum has convened experts from a broad range of fields to focus on two workstreams related to the future of the metaverse: governance and value creation.

Future workstreams will focus on two additional governance-related themes: privacy, safety and security; and identity. The value-creation track will issue additional outputs focused on other industries and the social implications of the metaverse.

“The metaverse is the next version of the internet and it is critical that it’s built by all, and for all. These two outputs reflect premier work on the metaverse involving such an extensive set of stakeholders and leaders, demonstrating the unique value of public-private partnership in metaverse development,” said Cathy Li, Head of Media, Entertainment and Sport, World Economic Forum.

Huda Al Hashimi, Deputy Minister of Cabinet Affairs for Strategic Affairs, Office of the Prime Minister of the United Arab Emirates, said: “Making the most of the metaverse will require governments to be proactive in understanding both the opportunities and the challenges that a persistent and interconnected virtual environment offers. This will also require developing new capabilities and importantly a different approach to regulation, informed by agile principles. This briefing paper clearly lays out a framework that can help governments gain a better understanding of the opportunity presented by the metaverse and makes a strong case for investing now in creating the conditions that will allow to generate public value from it, whilst protecting the public.”

Peggy Johnson, CEO of Magic Leap, Inc., said: “At Magic Leap, what excites us about augmented reality is the two-way bridge it creates between our digital and physical worlds, taking information from 2D screens into 3D spaces, where it is far more intuitive and engaging. We’re at a pivotal moment for this technology, and it is critical that we have a shared set of principles that support further innovation, ensure accessibility and promote interoperability between platforms.”

Yat Siu, Co-Founder and Executive Chairman of Animoca Brands, said: “The metaverse initiative is focusing on highly relevant topics to the metaverse, like interoperability – which is fundamental to digital assets. How do we ensure true ownership of assets? How do we improve the frameworks from those used in Web2.0? These are the complicated issues this initiative is taking on and finding answers to.”

Continue Reading

Publications

Latest

st st
Economy53 mins ago

Free-Market Capitalism and Climate Crisis

Free market capitalism is an economic system that has brought about tremendous economic growth and prosperity in many countries around...

Diplomacy5 hours ago

The Dilemma of Science Diplomacy: Between Advancement of Humanity and The Source of Rivalry

In the past decades, science and technology have gained more ground in foreign affairs decision making processes. The emergence of...

people art people art
Russia8 hours ago

Context and Practice of International Politics: Experience in 2022 and Expectations from 2023

The dramatic events of 2022, centred on the military-political conflict between Russia and the West over the Ukrainian issue, are...

Finance10 hours ago

Blue Economy Offers Opportunities for Sustainable Growth in Tunisia

With support from the World Bank, in June 2022, Tunisia launched its first report on the status of the blue...

Reports12 hours ago

Global growth forecast to slow to 1.9% in 2023

Senior UN economists warned on Wednesday that intersecting crises are likely to add further damage to the global economy, with...

World News13 hours ago

War games will take place off Durban between South Africa, China and Russia

South Africa’s government has finally shown its colours by inviting Russia and China for war games next month, London’s ‘Daily...

Russia16 hours ago

The Status of Crimea between Russia and Ukraine: The Reason Why China Stands to Neglect

The status of Crimea is a contentious issue between Russia and Ukraine. In 2014, Russia annexed Crimea from Ukraine, a...

Trending