Innovation & Regulation
The emergence of online banking, online insurance services, telephone banking, smartphones, and applications to help individuals plan and manage their financial affairs has seen an explosion in personal data collection by financial services institutions. This also brought with it strict regulations regarding the use of this information.
Many large financial services organisations hold vast petabytes of information about their customers, their habits, transactions and some deeply private and personal information. Self-regulation, compliance processes and system design keep many silos of informations separate and create duplicate information which can rapidly become out of date.
Costs and Risk
The cost of distributing information to customers has grown exponentially, with many organisations seeking to move the distribution into digital channels such as secure online portals. These require strong identity and authentication regimes to comply with security policy and manage the risks associated with access and control of a bank account or credit card.
Many of these services offer individuals the ability to download digital copies of some of the data held such as bank statements, credit card statements, insurance certificates. Unfortunately, these are often either images of former paper documents or, if data, not structured in a way that they can easily be analysed or used by the individual without some form of intervention or expertise.
The Mydex Platform offers an alternative, more efficient, easier to use and more secure option for financial services organisations and their customers. There are three core services:
- Identity services — Removes the need for a unique username and password to access a variety of services, giving the individual a portable, digital identity that operates on multiple current popular standards. This makes it possible for a financial services organisation to simply adopt the individual’s own multi-factor authentication solution and avoid the cost and complexity of administering its own.
- Attribute exchange — A financial services organisation can securely exchange verified data with its customers. Records are kept up to date, and all permissioned parties receive the changes when information is added or updated. This removes the need for paper-based interaction to provide proof of claims or to verify information about an individual. The net effect is not only huge cost savings, but also a seamless digital interaction between organisation and customer that can improve engagement, make things happen faster and leave everyone more satisfied with the process.
- Personal data management — An individual gets their own Mydex Personal Data Store. There, they can store, manage and share data with the relevant people to get stuff done. The management and sharing process is under their control, resulting in more complete, more up to date and more relevant data shared directly between an organisation and their customer. If more than organisation needs the same information to solve a problem, the individual can take this portable, verified data to each one them, instead of a group of organisations having to contend with regulatory and technological obstacles. Using the individual as the point of integration allows financial services organisations to focus on giving their customers a great service.
In creating this Trust Framework and Platform, Mydex CIC has enabled a new wave of innovation in apps and service development which, for the first time, allows access to a rich range of verified data, fully permissioned by the individual, at low cost and low effort.
Financial services organisations can leverage their credentials around regulated compliance processes such as KYC and strong authentication to offer the individual digital certificates confirming, for example, that their identity has been verified to a certain level. By sharing this information and the related certificates with the individual, they are able to combine the data and proofs of claims and share them with organisations across all sectors and reduce risk, delay and uncertainty in a wealth of transactions.