Find out about the progress we’re making towards providing practical synthetic data insights for practitioners and policymakers, and how you can get involved.
We set up the Synthetic Data Expert Group (SDEG) in March 2023 to further explore the use of synthetic data in financial markets. The group brings together 21 experts from across financial services, public sector, data and technology vendors, and consumer groups.
Following the first 4 meetings of the SDEG between May and October 2023, we’re providing an update and inviting feedback on the group’s progress.
What we’ve set out to achieve
The group plans to run until November 2024 and aims to provide practical and tangible synthetic data insights for practitioners and policymakers. It will achieve this by:
Producing a report on using synthetic data in practice
We’ll produce a report providing practical experiences of using synthetic data to help practitioners and policymakers. The report will explore lessons learned and good practice with use cases on the following themes:
Data augmentation and bias mitigation: the use of synthetic data to artificially increase underrepresented groups or data points to reduce bias in a dataset.
System testing and model validation: the use of synthetic data to confirm that a system or model achieves its intended purpose.
Data sharing (internal and external): the process of making synthetic data available to multiple users (eg within an organisation) or organisations (eg third party vendors, research institutions).
Members will provide insights into generation techniques, evaluation metrics, and internal stakeholder management when using synthetic data.
The report will explore the use of synthetic data across several use cases including fraud detection and controls, credit scoring, anti-money laundering (AML) and open banking.
Creating a collaborative framework between the public and private sector
Regulators globally are developing ways to enable public-private collaboration on data sharing and Privacy Enhancing Technologies (PETs). As part of the SDEG, we‘ll create a framework that enables organisations to collaborate on synthetic data use cases, for example by using our Digital Sandbox.
The framework is in the early stages of development and will likely focus on some of the identified priority use cases, such as fraud. We’ll share more information on this next year, but this is subject to change depending on market needs and priorities of the SDEG.
We welcome input and industry views on the design of the framework.
The benefits of data
Data has the power to unlock significant transformation across financial services, enhancing operational efficiencies, reducing compliance costs, and improving consumer outcomes.
Recognising the importance of privacy, innovators are increasingly adopting PETs to harness the insights from data while safeguarding consumers’ right to privacy.
‘Synthetic data’ is one example of a PET that we’ve explored through initiatives such as our Digital Sandbox, TechSprints, and roundtable events. We see our role as encouraging responsible innovation that enhances consumer values and protects one of their greatest assets: their data.
