TISA welcomes smart data inclusion in data protection bill
The inclusion of smart data in the Data Protection and Digital Information Bill will help to encourage open finance uptake, The Investing and Savings Alliance (TISA) has said.
The bill aims to regulate the way that consumer and business data is managed online.
There had been concern that this could lead to further regulation around the implementation and management of open banking and open finance. However, the latest version of the bill includes smart data.
The ability to use smart data to share consumer and business information is a cornerstone of open banking and open finance.
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“It is encouraging to see the inclusion of smart data in the Data Protection and Digital Information Bill, published by the government today,” said Harry Weber-Brown, chief executive at TISA Digital.
“Smart data and open finance will revolutionise the way we access financial services. We are therefore pleased that the government is determined to support this while maintaining privacy standards, thus addressing the chief barrier to wider adoption of open finance in practice.”
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According to a recent report into open finance published by TISA and EY, 90 per cent of consumers would use dashboards that consolidate the view of pensions, savings, and investments in one place.
However, the research also found that the single greatest barrier to use was shown to be the protection of private consumer data.
“We welcome the bill as published today, because it achieves the twin aims of enabling an effective digital finance ecosystem while retaining privacy standards,” added Weber-Brown.
“The UK was at the forefront of open finance when open banking was launched. However, recent years have seen other jurisdictions adopt more effective data standards and move ahead on open finance implementation. Smart data receiving government backing in such a significant way should provide the boost necessary to finally allow UK consumers to reap the benefits of open finance.
“We look forward to continuing to work with the government, regulators, and the industry to secure the UK financial services industry position as a world leader and pioneer in digitisation, enhancing competition and consumer financial wellbeing.”
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