The Financial Conduct Authority (FCA) want to understand the existing market maturity of synthetic data within financial services and its potential for safely opening data sharing between firms, regulators and other public bodies.
Increasingly, innovation within financial services is data-driven, requiring large volumes of high-quality data to develop and train accurate, effective models and systems. However, financial data – such as consumer transaction records, account payments, or trading data – is sensitive personal data subject to data protection obligations, as well as often being commercially sensitive. The UK regulator believes this is where synthetic data could help.
The FCA will be evaluating the maturity of synthetic data usage within financial services, and the extent to which both regulated and unregulated firms are using it, as well as calling for industry views on the extent to which synthetic data can expand data access and data sharing opportunities in the market. It is also consulting on the role of the regulator synthetic data provision.