Advances in cloud-based technology, in combination with regulation and security, are evolving in such a way to tackle concerns. Ultimately, I see the collection and aggregation of data in our industry as an opportunity and a potential threat, the classic double-edged sword. The services we build using data can be of huge benefit to both the individual and society, as long as we continue to respect an individual’s data rights and build open platforms.
Privacy
The other issue about gathering data to build algorithmic processes and systems is data privacy.
It is vital to balance your ability to create services based on machine learning with honouring and respecting people’s privacy and adhering to data security rules. I believe the answer to that balancing act – while satisfying the service provider, customer and regulators – is partially philosophical and partially technical.
From a technical perspective, tools such as data lineage and data auditing will prove useful. Data lineage takes the origin of data, following what happens to it and where it moves over time. This can help with visibility, such as identifying errors in data analytics processes, tracking them back to their root cause.
Data audits cover questions such as what data you hold and why, how you collect it, where it is stored, what you do with the data. Adequate processes must be in place to manage the data processing, supported by well-documented, regularly reviewed records.
That is all the technical side. Then we have what I refer to as the philosophical approach, which is about the role as custodian of data. I believe if one views their role as a responsible steward of someone else’s data, rather as owner who intends to leverage it as far as possible, then they will more likely be on the right side of history (and the regulator).
Eventually I believe an organisation’s approach to data will become a propositional element and differentiator. In time, I expect people will start asking more questions around data collection, storage and usage. I think it might start with platforms and RFPs coming in from advisers but as such models evolve, end customers may start factoring these considerations into their decision-making.
With regard to regulation, I expect we shall start to see a further evolution of the existing rulebook, ensuring it remains fit for purpose. We cannot be naive enough to think we can just rely on well-intentioned industry participants to be good stewards of data. Rules, such as those around data protection, must be in place.
