Banking

Challenge

The value in financial data sharing is undisputable for both consumers and financial institutes. Towards that direction, the concept of Open Banking (PSD2) has been introduced allowing banks to share identity and financial data with citizens consent. Citizens are able to access and manage multiple bank accounts from a single point, as well as to use third-party services that leverage their identity and financial data. Even though explicit consent from the user is required, the question remains: Is the data provider still the owner of the data? From the point that citizens have given their consent for a third-party service to access their identity and financial data, how can we ensure data confidentiality, meaning that the data provider still remains the sole owner of the data? Furthermore, know-your-customer and anti-money laundering are key aspects that banks are forced to tackle by the regulation. Financial fraud such as money mulling where money is laundered through different mule accounts are only detectable through the cooperation of multiple banks. Thus, in order to effectively defend against fraud, there is a need for data sharing and data sovereignty between the financial institutes in a privacy preserving manner from the citizens’ aspect.

TANGO solutions

In the context of Open Banking, TANGO will empower citizens by giving the back the full control over their financial and identity data, while allowing them to leverage innovative third-party services to improve the financial aspect of their lives. Blockchain data management and trustworthy data sharing will allow citizens to maintain the ownership of their data. In the meantime, financial institutes will be able to share citizens data among each other, in a privacy-preserving way without revealing any personal data due to data tokenisation and trustworthy data sharing, and through strong data analytics and transaction correlations, they will be able to identify money laundering cases as well as money mulling accounts. Furthermore, strong user and device continuous behavioural authentication will allow financial institutions to proactively detect fraudulent transactions, protecting their customers and re-gaining trust.