November 29, 2023
Raidiam’s resident Open Futurist Marie Walker sat down with the Smart Data Challenge Delivery Team to talk about the opportunities in Smart Data’s future and share some tips for discovery challenge entrants.
(Click on each question to read Marie’s answer)
“One way of looking at that is to think about how the UK mandated the adoption of Open Banking and really became the global blueprint. But we haven’t kept pace with the ambition and results of second movers such as Brazil, so we’re losing that image as a world leader. Smart Data is an opportunity for the UK to reclaim its leadership on the global stage.
But what’s more exciting, for me, is the broader societal and economic opportunity. Personal data mobility and the emerging data economy will change all our lives for the better. It opens the way for consumers to be seamlessly connected to innovative, personalised products and services that are in their best interests.”
“Consumers don’t care about the intricacies of Smart Data or open banking – they will embrace products and services that improve their lives. Small businesses, for example, have been quick to embrace Open Banking because of its ability to save them time and money.
Of course the success of Smart Data, as with open banking, relies on trust – between data providers and data receivers in the ecosystem, and between individual suppliers and customers. So there must be the right governance, controls and enablers to underpin its implementation. But consumers don’t need to know the details any more than I really understand the technology that allows me to make a contactless payment.”
“Data can give a business a strong competitive edge and a defensive moat against new rivals, so it’s no surprise that many incumbent banks have been reluctant to share what some see as ‘their’ data. Opening up demands a change of business culture and new business models, and that’s not easy.
But that’s already changing, with banks like NatWest leading the way, most recently offering enriched data to provide SMEs with valuable insights. Forward-thinking data holders recognise that it’s not entirely a one-way street – data providers can be data receivers as well. What’s more, as consumer demand grows, businesses that are resistant to change will face a rude awakening.
I often get asked about monetisation strategies and how to create incentives for participants. To some degree everyone is trying to identify the ‘killer app’. I’m not sure that’s the right approach. Smart Data is a foundational technology, like the internet – put it in place, and exciting things will happen.
Smart Data creates efficiencies, reduces risk, promotes inclusion, enables new and better products and services and much more. I think a lot of the benefits will be small, incremental ones that aren’t headline grabbers in themselves but the value cumulatively is huge and game changing.”
“One key lesson is getting the incentives right. In the UK, the largest banks were not just asked to open up their data but to cover all the costs of the core infrastructure as well. You really want to encourage the development of a collaborative ecosystem, where all the stakeholders are on side.
I think there’s definitely a case to be made for mandating Smart Data, and getting the right standards in place. A lot of the delays in open banking in places like Europe can be attributed to not having agreed on a single common standard. And even the US – which has seen fantastic, market-led innovation – is coming round to the idea of regulation.
The great thing is that the technology for cross-sector data sharing already exists; the key challenge lies in aligning sector standards and governance. Getting challenge participants working with sandboxes to showcase Smart Data’s possibilities is an effective way to encourage progress.”
“I’m going to have to say the digital home-buying experience that the Open Property Data Association is working on. This not-for-profit group of home-buying professionals, including mortgage providers and estate agents, has proven the use case for speeding up the home-buying process. With government involvement, the initiative aims to break down silos in property data held by different entities and provide this information to the home buyer all in one place. This will considerably de-risk the home-buying process as well as speeding it up and reducing costs. It is an obvious and hugely beneficial use case that I think everyone can identify with!”
“There’s an old adage that if you can make your hobby your career then you’ll have a really fulfilling life, and you’re going to be more successful at it. So if you make your challenge something that you’re passionate about, whether that’s a hobby, an interest or a charity, then aligning the challenge with your interests can lead to innovative solutions.
Or it could be a problem or complex situation you have faced. For example, can more be done to digitise the probate experience when someone dies? Government has already taken steps in the right direction by offering a ‘Tell us once’ service where you inform them that one of your loved ones has died and they will cancel their passport, driving licence, benefits, etc. But what about all their financial accounts, subscriptions, post and so forth that need to be dealt with too?
Try picking a personal interest or problem you face, or, try simply thinking to yourself how could I improve my product or service with access to just one set of data from a different sector? What could it tell me about my customer that helps me improve my offering?”
As Raidiam’s Open Futurist Marie has privileged access to plans and pilots for Smart Data around the world. She’s constantly surprised by how much progress is already underway, and believes it all starts with ambition, good intentions, and an idea. Marie says it’s exciting to be supporting the Discovery Challenge and to be helping the innovators that surprise and inspire us all.
