Surveillance society: big data (TMC Conference 2016)

United KingdomScotland

More data has been collected in the past two years than in the entire history of the human race and not even half of it has been analysed or used yet and while “big data” poses potentially huge opportunities there are fears it comes with significant risk.

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Speakers

Jason Sahota, CEO, Charles Taylor InsureTech

Justin Basini, CEO, ClearScore

Mike Merritt-Holmes, VP, Global Services Strategy, Think Big

Christian Runte, Partner, CMS

Satyen Dhana, Partner, CMS

More data has been collected in the past two years than in the entire history of the human race and not even half of it has been analysed or used yet. By 2019 the worldwide value of data is estimated to be more than $100billion, according to IDC. These are facts that are met with either extreme excitement or trepidation by consumers and regulators worldwide because while 'big data' poses potentially huge opportunities there are fears it comes with significant risk.

Mike Merritt-Holmes, the vice-president of services for UKI and Nordics at Think Big Analytics, says much of the fear about big data is misplaced, describing it as more of a 'movement' started by companies. 'Companies were trying to get that 360 degree view of their customers but were struggling to do anything really meaningful with their data,' he explains. 'Until a couple of pioneers introduced some new technologies to look at data in different way and open sourced that software and made it available to the public.'

Combining these new pioneering technologies with machine learning is what has really created the buzz around 'personalisation' and big data. Justin Basini, chief executive of ClearScore, which provides free credit history reports, says: 'We are all walking around with these [smart phone] computers in our pockets with the ability to collect and store that data in a cheaper way than ever before. All our behaviours are being digitised the whole time – where we are, what we are doing and what we respond to - and that creates a massive opportunity to solve some of the problems we have in business but also in society.'

But there are growing concerns about how big data should be regulated. For example, there are questions about who owns the data and how it should be used, as well as concerns about whether consumers are informed enough to give proper consent to the use of their data.
Jason Sahota, the chief executive of Charles Taylor InsureTech, says the biggest challenge from an insurance point of view is determining who owns the data and how to protect it. Different countries also take different regulatory approaches with Germany adopting a particularly conservative view. Christian Runte, a partner at CMS, says across Europe much of the regulatory focus is around the use of personal data as well as the consumer perception of how big data is used.

However, most agree that the fundamental challenge facing the use of big data is ensuring there is complete transparency around its use. Mr Runte says the new General Data Protection Regulation will not make compliance easier to achieve for businesses. 'It is the responsibility of whoever is collecting the data to get consent which is why you are clicking through so many 'I accept' buttons these days, but is anyone reading these [consent requests]?,' he says. 'It is a challenge for industries and lawyers to meet these requirements in a customer-friendly way that is very clear and transparent.'

ClearScore says it asked 10,000 people to analyse their data and only 12 per cent gave their consent. However, when those same consumers were asked if their data could be analysed to help better predict when people might fall into credit difficulties the 'opt in rate' rose to 45 per cent: 'If you are transparent about what you actually want to do with the data and actually have a conversation with a customer they can make informed consent,' explains Mr Basini. 'It opens things up.'

Education is clearly key to the debate on big data not only in terms of convincing customers but also in striking the right regulatory balance that does not stifle innovation. This is particularly important at a time when Europe is trying to implement a single digital economy in Europe. 'This is not about big brother,' says Mr Merritt-Holmes. ' This is about the responsible use and analysis of data.'