White PaperThe Next Generation of Data-Sharing in Financial Services: Using Privacy Enhancing Techniques to Unlock New ValueSeptember 2019Prepared in collaboration with DeloitteWorld Economic Forum91-93 route de la CapiteCH-1223 Cologny/GenevaSwitzerlandTel.: +41 (0)22 869 1212Fax: +41 (0)22 786 2744Email: contact@weforum.orgwww.weforum.org© 2019 World Economic Forum. All rights reserved. No part of this publication may be reproduced or transmitted in any form or by any means, including photocopying and recording, or by any information storage and retrieval system.This white paper has been published by the World Economic Forum as a contribution to a project, insight area or interaction. The findings, interpretations and conclusions expressed herein are a re-sult of a collaborative process facilitated and endorsed by the World Economic Forum, but whose results do not necessarily represent the views of the World Economic Forum, nor the entirety of its Members, Partners or other stakeholders.3The Next Generation of Data-Sharing in Financial Services: Using Privacy Enhancing Techniques to Unlock New ValueForewordIntroduction Chapter 1: Privacy in the financial sectorThe benefits of data-sharing The potential drawbacks of data-sharingChanging the dynamics of data-sharingChapter 2: Privacy enhancing techniques Technique #1: Differential privacy Technique #2: Federated analysis Technique #3: Homomorphic encryption Technique #4: Zero-knowledge proofs Technique #5: Secure multiparty computation Chapter 3: Applications in financial services Unlocking new value for financial institutions Unlocking new value for customersUnlocking new value for regulatorsClosing commentsAppendix Benefits and limitations of techniques Further reading Acknowledgements Endnotes 456666891113151720202224252727303133Contents4The Next Generation of Data-Sharing in Financial Services: Using Privacy Enhancing Techniques to Unlock New ValueForewordThe centrality of data to the transformations of the Fourth Industrial Revolution is today so self-evident as to have become a cliché, and whether you believe data is the new oil, the new gold or even the new bacon, there is no doubt that its growing importance is shifting the priorities of the private sector. However, while many column inches have been dedicated to the competitive scramble to accumulate vast troves of data, less attention has been paid to the growing appetite of firms to unlock the power of data-sharing between institutions. Within the financial system specifically, we have seen a significant increase in the appetite for such collaborations across use cases ranging from improving fraud detection to enabling new forms of personal financial advice.Of course, sharing data is not without risks. The potential value of collaboration must be weighed against its implications on customer privacy, data security and control of competitively sensitive data. Historic...
