Personal data is the raw material that fuels a significant proportion of business operations. A few examples include credit card scoring based on collated personal data from various sources, calculation of premiums based on past driving habits, or the use of online tracking to build complete profiles of individuals and then targeting them with personalized ads based on those profiles. While personal data is highly essential to these business operations, individuals have little to no control and oversight on the collection and usage of their personal data.
There is anger towards the data economy and frequent privacy violations; there are still ways to restore control to the people and rebuild a trust-based and transparent relationship.
This lack of control is due to a few practices common to the current data collection and usage practices:
Personal data is scattered across so many different companies that it is nearly impossible to keep track of who accesses it, how they use it or who they share it with. For example, data brokers’ business model depends on the collecting, collating, selling and licensing personal data on a mass scale. It is next to impossible to track data across systems and determine whether the data was obtained lawfully or object to the processing of data.
The reproducible nature of data exacerbates the risks even further, contributing to a growing fear over privacy. Once personal data enters into a business’ internal systems, it can be copied to multiple locations, used by employees on their personal devices, left unprotected on legacy servers. All these processing activities increase unauthorized use or access to personal data.
Collection, analysis, and personal data transfer are usually conducted behind closed doors not visible to individuals and often with technologies such as machine learning, which is opaque to ordinary individuals. Individuals are often not adequately informed about the use of their data due to reasons such as trade secrets, impracticality, or simply the bureaucratic hurdles caused by the relevant business itself. Even laws such as GDPR and CCPA may not be effective at coercing a business to provide the maximum transparency possible.
Individuals’ lack of knowledge on collection, use and sharing of their personal data inevitably leads to distrust in companies involved in personal data collection.
The imbalance of power and lack of trust is evidenced by a PRC study that found that 76% of Americans do not trust third-party businesses to handle their personal data and feel a sense of lack of control over how their data is collected, managed and used.
Furthermore, Americans outside of California want to have more control over their data and want to have the same protections on their personal data as regulated under CCPA (91%).
While consumer demands are crystal-clear, how to deliver on those demands remains unclear. Personal Data Stores, however, can be an effective solution to remedy consumer concerns and provide them the visibility and control over their data.
Personal Data Stores – An unconventional solution to a bleeding problem
What is the Personal Data Store?
Personal Data Store (PDS) is like a safe for individuals to upload, share, store, edit and erase their personal information, such as addresses, passport numbers, credit history, health records and other information.
One unique character of the PDS is that users(consumers) can unilaterally grant or withdraw consent to access their personal data. Once the consumer decides to block access to her data, the relevant business is prevented from accessing it.
How Personal Data Stores help consumers regain control over their data?
1. Increased transparency equals stronger control
Firstly, Personal Data Store gives complete visibility over what data an individual has, who accesses it, how it is used, and for what purposes.
The scattered nature of personal data in the current ecosystem makes it impossible for individuals to track who retains their data and who they share it with. For example, home address data could be captured and stored by data brokers, postal offices, e-commerce companies and various other entities. If individual wishes to find out who uses their data and how, it would be challenging to contact each entity, fill out forms, and then track requests.
With Personal Data Stores, however, individuals are given exclusive control and visibility over how their data is processed and by whom. Increased transparency is a prerequisite to having control over data and this is what personal data stores achieve.
Thanks to this visibility, consumers can withdraw access to certain third parties, edit personal data that is not accurate and ask for the deletion of their data.
2. Stronger control enables the exercise of privacy rights under the relevant laws
New privacy laws such as GDPR and CCPA provided new rights to consumers, such as the right to deletion of their data, the right to rectify inaccurate data and the right to restrict access to their data.
For consumers to properly exercise their rights under these laws, they first must have complete information about the collection and use of their data. Exercising privacy rights is a decision, and this decision will not be well-informed without individuals having control and visibility.
Via Personal Data Stores, individuals can see which specific data is accessed by which specific third-party on a granular level.
One factor that plays a vital role in the successful implementation of privacy rights is a convenient and swift exercise of those rights. If a consumer has to fill out tens of details to complete a form, wait for weeks to get her privacy right fulfilled, then the essence of such privacy rights would be undermined because the consumers would be discouraged from using their rights.
What if a person changes her health insurance plan and now has to contact multiple pharmacies and hospitals to update this detail?
New privacy laws exist to restore control to the individuals, and this cannot be achieved with processes that make it unbearable for individuals even to try to exercise their rights. In other words, the individuals would not be empowered but rather find themselves in the same powerless position.
Personal Data Store serves the purpose of privacy laws because it streamlines the process of exercising privacy rights such as deletion and data rectification rights. It provides a single user-interface that people can use to send their requests without dealing with the separate and cumbersome procedures set by third-party businesses.
Suppose an individual wishes data concerning her unsuccessful job applications deleted, for instance. In that case, she can log this request via the Personal Data Store, and all relevant third parties will be notified of this request and they will have to execute on such request.
A better future for privacy lies ahead.
New privacy regulations across the globe brought significant obligations on businesses to respect privacy and allow individuals to exercise certain rights over their data. While these new laws and the expansion of privacy is to be celebrated, there is still more work to be done. Personal Data Store can contribute to individuals’ empowerment by allowing them to exercise stricter control over the access and usage of their data.
Jay Pavagadhi
Jay Pavagadhi is Founder and CEO at California based data privacy startup – Olak. Previously, he worked on a wide range of high-impact projects within Siri, Bing Search, Exchange Mail, Azure, and Yahoo! Mail at big tech companies including Apple, Microsoft, Yahoo, and Nvidia.
London-based fintech startup Kennek has raised $12.5 million in seed funding to expand its lending operating system.
According to an Oct. 10 tech.eu report, the round was led by HV Capital and included participation from Dutch Founders Fund, AlbionVC, FFVC, Plug & Play Ventures, and Syndicate One. Kennek offers software-as-a-service tools to help non-bank lenders streamline their operations using open banking, open finance, and payments.
The platform aims to automate time-consuming manual tasks and consolidate fragmented data to simplify lending. Xavier De Pauw, founder of Kennek said:
“Until kennek, lenders had to devote countless hours to menial operational tasks and deal with jumbled and hard-coded data – which makes every other part of lending a headache. As former lenders ourselves, we lived and breathed these frustrations, and built kennek to make them a thing of the past.”
The company said the latest funding round was oversubscribed and closed quickly despite the challenging fundraising environment. The new capital will be used to expand Kennek’s engineering team and strengthen its market position in the UK while exploring expansion into other European markets. Barbod Namini, Partner at lead investor HV Capital, commented on the investment:
“Kennek has developed an ambitious and genuinely unique proposition which we think can be the foundation of the entire alternative lending space. […] It is a complicated market and a solution that brings together all information and stakeholders onto a single platform is highly compelling for both lenders & the ecosystem as a whole.”
The fintech lending space has grown rapidly in recent years, but many lenders still rely on legacy systems and manual processes that limit efficiency and scalability. Kennek aims to leverage open banking and data integration to provide lenders with a more streamlined, automated lending experience.
The seed funding will allow the London-based startup to continue developing its platform and expanding its team to meet demand from non-bank lenders looking to digitize operations. Kennek’s focus on the UK and Europe also comes amid rising adoption of open banking and open finance in the regions.
Featured Image Credit: Photo from Kennek.io; Thank you!
Radek Zielinski
Radek Zielinski is an experienced technology and financial journalist with a passion for cybersecurity and futurology.
As excitement around generative AI grows, Fortune 500 companies, including Goldman Sachs, are carefully examining the possible applications of this technology. A recent survey of U.S. executives indicated that 60% believe generative AI will substantially impact their businesses in the long term. However, they anticipate a one to two-year timeframe before implementing their initial solutions. This optimism stems from the potential of generative AI to revolutionize various aspects of businesses, from enhancing customer experiences to optimizing internal processes. In the short term, companies will likely focus on pilot projects and experimentation, gradually integrating generative AI into their operations as they witness its positive influence on efficiency and profitability.
Goldman Sachs’ Cautious Approach to Implementing Generative AI
In a recent interview, Goldman Sachs CIO Marco Argenti revealed that the firm has not yet implemented any generative AI use cases. Instead, the company focuses on experimentation and setting high standards before adopting the technology. Argenti recognized the desire for outcomes in areas like developer and operational efficiency but emphasized ensuring precision before putting experimental AI use cases into production.
According to Argenti, striking the right balance between driving innovation and maintaining accuracy is crucial for successfully integrating generative AI within the firm. Goldman Sachs intends to continue exploring this emerging technology’s potential benefits and applications while diligently assessing risks to ensure it meets the company’s stringent quality standards.
One possible application for Goldman Sachs is in software development, where the company has observed a 20-40% productivity increase during its trials. The goal is for 1,000 developers to utilize generative AI tools by year’s end. However, Argenti emphasized that a well-defined expectation of return on investment is necessary before fully integrating generative AI into production.
To achieve this, the company plans to implement a systematic and strategic approach to adopting generative AI, ensuring that it complements and enhances the skills of its developers. Additionally, Goldman Sachs intends to evaluate the long-term impact of generative AI on their software development processes and the overall quality of the applications being developed.
Goldman Sachs’ approach to AI implementation goes beyond merely executing models. The firm has created a platform encompassing technical, legal, and compliance assessments to filter out improper content and keep track of all interactions. This comprehensive system ensures seamless integration of artificial intelligence in operations while adhering to regulatory standards and maintaining client confidentiality. Moreover, the platform continuously improves and adapts its algorithms, allowing Goldman Sachs to stay at the forefront of technology and offer its clients the most efficient and secure services.
Featured Image Credit: Photo by Google DeepMind; Pexels; Thank you!
Deanna Ritchie
Managing Editor at ReadWrite
Deanna is the Managing Editor at ReadWrite. Previously she worked as the Editor in Chief for Startup Grind and has over 20+ years of experience in content management and content development.
As Web3 companies increasingly consider leaving the United States due to regulatory ambiguity, the United Kingdom must simplify its cryptocurrency regulations to attract these businesses. The conservative think tank Policy Exchange recently released a report detailing ten suggestions for improving Web3 regulation in the country. Among the recommendations are reducing liability for token holders in decentralized autonomous organizations (DAOs) and encouraging the Financial Conduct Authority (FCA) to adopt alternative Know Your Customer (KYC) methodologies, such as digital identities and blockchain analytics tools. These suggestions aim to position the UK as a hub for Web3 innovation and attract blockchain-based businesses looking for a more conducive regulatory environment.
Streamlining Cryptocurrency Regulations for Innovation
To make it easier for emerging Web3 companies to navigate existing legal frameworks and contribute to the UK’s digital economy growth, the government must streamline cryptocurrency regulations and adopt forward-looking approaches. By making the regulatory landscape clear and straightforward, the UK can create an environment that fosters innovation, growth, and competitiveness in the global fintech industry.
The Policy Exchange report also recommends not weakening self-hosted wallets or treating proof-of-stake (PoS) services as financial services. This approach aims to protect the fundamental principles of decentralization and user autonomy while strongly emphasizing security and regulatory compliance. By doing so, the UK can nurture an environment that encourages innovation and the continued growth of blockchain technology.
Despite recent strict measures by UK authorities, such as His Majesty’s Treasury and the FCA, toward the digital assets sector, the proposed changes in the Policy Exchange report strive to make the UK a more attractive location for Web3 enterprises. By adopting these suggestions, the UK can demonstrate its commitment to fostering innovation in the rapidly evolving blockchain and cryptocurrency industries while ensuring a robust and transparent regulatory environment.
The ongoing uncertainty surrounding cryptocurrency regulations in various countries has prompted Web3 companies to explore alternative jurisdictions with more precise legal frameworks. As the United States grapples with regulatory ambiguity, the United Kingdom can position itself as a hub for Web3 innovation by simplifying and streamlining its cryptocurrency regulations.
Featured Image Credit: Photo by Jonathan Borba; Pexels; Thank you!
Deanna Ritchie
Managing Editor at ReadWrite
Deanna is the Managing Editor at ReadWrite. Previously she worked as the Editor in Chief for Startup Grind and has over 20+ years of experience in content management and content development.
