In each edition of Frontiers in Finance, we spotlight a new idea, solution or technology that — we believe — has the potential to transform the financial services industry. For this ‘risk and regulation’ edition, we selected Trunomi, a UK-based data rights platform that is helping financial services firms deal with the growing body of data rights regulation around the world.
David Milligan (DM): What does Trunomi's platform do?
Julian Johns (JJ): Simply put, we turn data regulation into a competitive advantage by enabling financial services firms to use data rights to empower their customer relationships and drive trust. We do this by enabling data rights capture across a wide range of customer touch points and then distributing that, very simply, within the business.
DM: How does the solution help build trust?
JJ: Our solution lets financial services firms provide their customers with a personal data rights portal where they can control what information is stored, why it is stored, how long it is stored and all of the various rights that come with that. And that demonstrates to customers that you are serious about protecting their rights which, in turn, builds trust.
DM: What specific 'pain point' does Trunomi solve for financial services firms?
JJ: With the introduction of various data privacy rights regulations — like GDPR — financial services firms really need to know exactly what consumer data they have, where they are storing it and why.
For larger banks and insurers, for example, it’s a massive struggle to manage this type of data rights capture at scale, particularly using legacy infrastructure. At the same time, challenger banks and fintechs are looking to quickly stand up new data rights infrastructure and want a fast and easy customer-facing solution.
Our platform solves these challenges — and many other such as reporting and integration — securely, at speed and at scale.
DM: How do you ensure security of the data you receive?
JJ: That's the beauty. We don’t have access to any customer data at all. What we focus on are the data rights capture processes. And that means that banks can avoid some of the more worrying third-party risks that come from sharing data. Our solution is also based on a distributed ledger technology, which means that our records are always secure and are quickly accessible if companies need to respond to a specific event or reporting requirements.
DM: How has your solution been received by financial services firms?
JJ: Extraordinarily well. We’re working with leading banks and insurers in a number of markets. And we’ve seen significant interest from fintechs. In part, I think that is because we are helping solve a very immediate and difficult challenge that most financial services firms now recognize has become rather urgent. But it’s also because we focus on both the front end and the back end of data rights capture. And that makes us very different from other solutions or work-arounds that these firms had been trying in the past.
DM: How do you see data rights changing over the next few years?
JJ: We’re already seeing a shift towards ‘one-to-many’ type relationships where customers provide their banks and insurers with permission to share data with third parties in order to secure better rates or deals. I think the next big shift will be around data rights portability — allowing consumers to move or alter their permissions at the end of the customer relationship. Both of these trends will require financial services firms to become much better at managing their customer data rights.
Julian Johns is the VP of Sales at Trunomi where he leads the organization's global Partner, Direct and Customer Success channels.
David Milligan is the CEO of KPMG Matchi, a leading global fintech/regtech innovation matchmaking platform and service, within KPMG's Global FIntech area. KPMG Matchi that helps financial institutions, regulators and others, to engage productively with emerging technology providers.