Potential of Big Data and

Considerations in Consumer

Protection

Louis de Koker, Senior Policy Advisor, CGAP

Global Symposium on Innovative Financial Inclusion

World Bank Group/Bank Negara Malaysia

Kuala Lumpur, 21-22 September 2016

BIG DATA: OPPORTUNITIES AND CHALLENGES

2

Fast-developing data sciences provide

exciting opportunities but also challenges:

Lack of conceptual clarity

Discipline silos and canyons

Proprietary information

Uncertain large-scale results for

consumers

Uncertain Indirect impact

IMPORTANT POLICY THEME

3

A range of current and continuing investigations and

consultations, e.g.

UN Human Rights Council's special rapporteur on the right to privacy:

Big Data

Federal Trade Commission Big Data: A Tool for Inclusion or

Exclusion? Understanding the Issues (2016)

White House Big Data: A Report on Algorithmic Systems,

Opportunity, and Civil Rights (2016)

Office of the Privacy Commissioner of Canada Consent and Privacy

(2016)

Office of the Australian Information Commissioner Guide to Big Data

and the Australian Privacy Principles (2016)

Outline

Two themes for this brief presentation:

1. Data-related opportunities and challenges

2. Automated analysis of data

4

DATA-RELATED OPPORTUNITIES

5

Data volume

Internet of things

Consumer analysis supporting appropriate services

Fraud and scam identification

KYC

About 1,8 billion persons lack a legal identity (ID2020)

India – e-KYC

Pattern of life analysis

DATA-RELATED CHALLENGES

6

Consent usage principles are challenged

Complexity

Blurring of data concepts

Cyber security

Vulnerable mobile devices

Vulnerable systems

More than 500 million digital identities were exposed or stolen in 2015

(Symantec)

Enabling identity fraud and cyber attacks

AUTOMATED ANALYSIS

Algorithms developed and improved by machine learning

Analytical processes lacking transparency

May mask bias

Difficult to identify errors

Enhanced profiling may enable targeting of vulnerable

consumers

7

Ensuring

sufficient

protection

without

stifling the

development

of new

technology

8 Photo: Erwinanto

Setiahardja, 2015 CGAP

Photo Contest

9

CONCLUSION

Moving forward

Multi-disciplinary collaboration to map and assess impact and

opportunities of Big Data in different communities and

countries

Regulatory, supervisory and governance capacity building

Advancing financial inclusion to improve the lives of the poor

www.cgap.org 10