How is big data used in fintech?
How is big data used in fintech? Why does FinTech love big data so much? Is it due to the nature of the business?
Where do these FinTech firms acquire all the data?
Often they will have data that you never even gave them!!
Moreover, electronic equipment including cell phones, ipads, kindles are proven to be able to collect a lot of user data. Who owns those data has been a big debate topic.
Also a lot of user data is collected by different parties. And different information extracted by different kinds of data. Some information is important to protect such as banking account number, social security number and credit card number. However other information such as click time for the application, views on social media accounts is not that important to protect but important for social influencers to analyze it. The European Union came up with the General Data Protection Regulation on 4/27/2016 and started becoming enforced on 5/25/2018. It mainly focuses on defining data and protecting private data.
What is defined as a data subject for any FinTech is clearly mentioned in the EU document.
As for the European Commision. There are several keywords that are clearly mentioned. Ones that personal data is any information that relates to an individual. Whether it relates to his or her private, professional or public life. It can be anything from a name, a home address, a photo, an email address. Or bank details, posts on social networking websites, medical information, or a computer’s IP address.’
There are two main points for data controllers to take care of including by design and by default.
By design means that data protection process designed during the development of software products. By default means that the data controller needs to comply with the data protection regulation during the process.
GDPR or General Data Protection Regulation, was born to help the public have better data privacy. At the same time, the firms that contain the data have more rules before starting the business. It is interesting that there are departments that are trying to regulate the data business and it can be the first step to test it out.