November 2017Fintech: Privacy and Identity in the New Data-Intensive Financial Sector7402 3948 8723 4099A CUSTOMER09/22VALIDTHRU
2Fintech: Privacy and Identity in the New Data-Intensive Financial Sector2/43Fintech: Privacy and Identity in the New Data-Intensive Financial SectorNovember 2017
3Fintech: Privacy and Identity in the New Data-Intensive Financial Sector3/43Executive Summary Introduction Part 1: The Promise and Power of Fintech Part 2: Fintech and Identity Part 3: The Growing Scope of Financial Identity Conclusion: The Future of Fintech A Way Forward for Privacy in the Fintech Sector4 810202738 39Table of Contents
4Fintech: Privacy and Identity in the New Data-Intensive Financial Sector4/43Executive SummaryIntroductionFinancial services are changing, with technology being a key driver. It is affecting the nature of financial services, from credit and lending through to insurance, and even the future of money itself. The field of fintech is where the attention and investment is flowing. Within it, new sources of data are being used by existing institutions and new entrants. They are using new forms of data analysis. These changes are significant to this sector and the lives of people it serves. With the promise of disruption, these changes in the financial industry have implications for human rights, privacy and identity. Fintech peers deeper into the lives of people. Many new services propose to increase the scope and nature of the data gathered about individuals. Data that people would consider as having nothing to do with the financial sphere, such as their text messages, is being used at an increasing rate by the financial sector. Yet protections are weak or absent. It is essential that these innovations are subject to scrutiny. Much of the change serves the financial services industry and its interests. Financial services already have significant impacts on people, and fintech is an opportunity to expand financial inclusion to underserved regions. But fintech is also an expansion of the nature of financial services, and our financial identity, to cover more and more aspects of our lives. As a result, the perspective on fintech must be far broader than financial considerations.About This ReportThis report explores how developments in the fintech sector are posing issues for privacy. It is based on fieldwork interviews in India and Kenya.The first part introduces the fintech sector, and interrogates some of the emerging narratives and discourses. The second part explores in more detail the ways in which identity has become a central theme of fintech, through an examination of the developments in India surrounding the use of the Aadhaar identification number and how it relates to the India Stack initiative.