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.
Coding – what is it and what are the benefits?
Coding has become more popular in recent years with everyone from entrepreneurs, hobbyists, children and professionals. And with many different kits now available, it’s easier than ever to try your hand at coding.
If you’re unsure what coding is or where to begin, read on to discover more and find out the benefits of learning this new skill.
What is coding and what is it used for?
In a nutshell, coding is writing a set of instructions in a language understood by machines to enable a computer to follow to carry out a task. It’s used daily across the world in multiple applications from appliances to traffic systems and the motor industry.
With more of the world relying heavily on digital systems, there is an increased need for those who know how to code. But it’s not just for professionals. Anyone can now try their hand at coding and it’s increasingly popular amongst hobbyists who are creating exciting projects during their spare time.
A good place to start when thinking about coding as a hobby is by using a Raspberry Pi kit. Starter kits are great for beginners and allow you to develop your coding skills with everything you need in one package.
Benefits of learning to code
Whilst some benefits of learning to code such as future career options might be obvious, there are other advantages to this skill:
- You could become smarter – Coding can utilise the logical part of your brain which is useful for other tasks, not just the coding process. It can also be very creative if you use your coding skills to work on different projects.
- It increases your employability – and not just in the computer software industry. Skills learnt from coding are transferrable and the kind of qualities employers across many industries will be looking for.
- It helps you understand technology – By getting to grips with computer languages, you’ll learn how technology works at a base level – knowledge that will filter through to everyday life as well as in your career.
- Enhance problem solving skills – By learning to code you’ll learn how to address problems and, in turn, become skilled at solving them. Tools that will be transferred to other aspects of life.
- Enhances STEM learning for kids – Using coding tools as educational play will develop a child’s skills around science and technology – industries which are only going to increase in the near future.
- Coding is a universal language – so there are endless opportunities to learning this skill.
Whatever knowledge you have of coding, why not give it a go? You could be creating the next big robotics project, having fun playing games with your kids or even developing a new software programme in no time.
C-Suite Toolkit Helps Executives Navigate the Artificial Intelligence Landscape
The World Economic Forum published the “AI C-Suite Toolkit” to support executives in their Artificial Intelligence implementation decision making. The toolkit provides a holistic approach to AI, covering multiple dimensions businesses need to consider when making investments in AI. Emphasis is given on potential risks these technologies create and how to ensure the ethical and responsible use of them.
“The key skill executives need to develop is the ability to understand the art of the possible with AI while identifying the main risks it creates,” said Kay Firth-Butterfield, Head of AI and Machine Learning at the World Economic Forum. Furthermore, Theos Evgeniou, Professor at INSEAD and Co-Founder of Tremau said, “Organizations need to adopt new data and AI risk management practices, processes and tools in order to both comply with upcoming regulations and to ensure customer trust”,
The new toolkit is the result of a collaboration among several AI experts and executives across companies and industries. It also builds on the previous World Economic Forum guide that’s targeted at Boards of Directors.
“AI is like the Internet: it feels optional until it’s too late. We were delighted to contribute Best Practice AI’s practical digital strategy and transformation experience working with executives globally to this world class effort. C-suite leadership is key to deliver data-enabled business model transformation – and senior management learning critical to ensure that this is done ethically and sustainably. The toolkit provides both,” said Simon Greenman, Partner at Best Practice AI and Member of the World Economic Forum’s Global AI Council
The AI C-Suite toolkit raises and discusses key questions that company executives need to consider when making investments in AI. These questions cover aspects around AI and business strategy, the impact of AI on an organization, AI maturity and organizational change, best practices for implementing AI, understanding and managing AI risks, and adoption of ethical and responsible AI practices and processes.
“With our strong expertise in manufacturing consultancy and +100 SIRI maturity assessments, we see that the foundational knowledge of AI in operationalizing the strategy is visible as a common need. Global research on the subject confirm that using AI has benefits like providing cost reduction, inventory minimization, quality increase, profit optimization, etc., and potential risks like strengthening inequalities. Creating a platform for understanding the benefits and mitigating the risks is required, especially at the executive level. With the modularity and extensive understanding of AI, this toolkit will be a reference guide for all leaders,” said Efe Erdem, MEXT Group Director & Head of C4IR Turkey. “We are excited for this toolkit to come to life and serve as a critical guideline for the industry.”
Organizations at various levels of AI maturity can benefit from the steps laid out in the AI C-Suite Toolkit to leverage AI while mitigating possible risks. “As an advisor to C-suite executives of organizations aspiring to become AI and Data-driven, we have observed firsthand how fundamental it is for leaders to understand how to make informed decisions such that their organizations can truly reap the benefits of AI in the coming years. We believe this guide will be instrumental in helping executives identify the right opportunities to solve problems using AI and overcome the challenges and barriers they will face on their journey,” said Nihar Dalmia, Canada Government and Public Services Leader, Omnia AI, Deloitte.
The toolkit states, “a culture of large volume experimentation, data-driven decision making, and ethical AI distinguishes market leaders.” The authors and contributors urge organizations to pilot this toolkit and share their learnings of using it.
“The AI C-Suite Toolkit on Empowering AI leadership is a timely report for C-suite executives as more organizations embrace AI across their enterprise,” said Anand Rao, Global Leader, Artificial Intelligence, PwC, USA. “PwC is delighted to collaborate with the World Economic Forum on this toolkit to provide a practical and operational framework to implement AI in a responsible manner. The holistic and enterprise-wide end-to-end governance will enable C-suite executives to take advantage of the benefits of AI while also addressing the societal and ethical risks.”
The Moscow Metro extends the Early Bird campaign
According to the Moscow Department of Transport, the Early Bird discount program has been extended until March 31. Thanks to this project, passengers can save up to 50% on fare payment for morning trips on Lines 7 and 15 of the Moscow Metro.
The Department noted that the Early Bird campaign helped to redistribute passenger flows and reduce passenger traffic of the Line 7 of the Moscow Metro, the busiest line of the network, during the peak hours. Cars on the Line 7 are now 7% freer in the morning peak hours. In addition, the crowdedness at Kitay-Gorod station has been decreased up to 18%, and Vykhino and Polezhaevskaya – up to 17%.
According to Maksim Liksutov, the Deputy Mayor of Moscow for Transport, the project has proved its effectiveness, having impacted the most popular section of the metro during peak hours. In this regard, it was decided to extend the Early Bird campaign.
«Thanks to the campaign, as well as to the adjustment of fares on Kazansky railway direction for those who travel to the railway station, cars became 7% freer in the mornings on Line 7 – we managed to relieve the load on the most popular section of the metro during rush hours. In this regard, the Mayor of Moscow decided to extend the Early Bird discount program until March 31», – said Maksim Liksutov, the Deputy Mayor of Moscow for Transport.
The project was launched in November 2020. Discounts are valid on weekdays until 07:15 and from 08:45 to 09:15 on the Moscow Metro Lines 7 and 15. About 100 thousand passengers use discounts every day. More than 5.7 thousand Moscow residents changed their daily travel time to off-peak. By the end of 2021, passengers have made more than 25 million discounted trips.
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