CONTEXT
In India, privacy challenges are complex due to multiple reasons.
LOW LITERACY
45th in Cyber Risk Literacy Index
States with lower Foundational Literacy Scores have higher cybercrimes
REGULATORY LAG
Cybersecurity regulatory frameworks falls 40.5x behind high-tech innovators’ infra
INEFFECTIVE CONSENT
Low clarity & control over granular aspects of data sharing terms
Lack of transparency and auditability
High trust in financial institutions and consent based data sharing
EDUCATION
Efforts to educate & inform customers about their rights & resources will play a huge role in addressing privacy challenges. However, this requires a long-term timeline to see noticeable impact.
PLACING TRUST IN TECH OVER LEGAL CONTRACTS
Preventing movement or exposure of data and collaborating on inferences to build a foolproof infrastructure that eliminates any risk of misuse or breaches.
Transparency, programmability and auditability to bind data processing with policy, governance and consent.
Technology as a Catalyst : Learnings from Financial Inclusion Drive
Addressing societal challenges often requires identifying and overcoming key barriers. By drawing a comparative analysis between the challenges encountered in financial inclusion and those in financial data privacy, we can benchmark and guide the development of effective solutions for data privacy.
Financial Inclusion
Faced challenges such as low literacy and the absence of a standardized identity system, further complicated by India’s diverse cultural and linguistic landscape.
The introduction of Aadhaar provided a universal identity solution, which became the foundation for innovative tools like UPI.
These technological solutions managed to harmonize a heterogeneous population by factoring in the multifaceted barriers, enabling rapid and widespread financial inclusion.
Financial Data Privacy
Currently faces similar challenges, including low cyber risk literacy and complex data protection requirements.
A significant barrier is the absence of standardized privacy solutions that can address both user needs and regulatory demands.
Aspect
Financial Inclusion
Financial Data Privacy
Supply and Demand Side Challenges 🔴
Low literacy and lack of collateral
Absence of a universal identity solution for all citizens
Trust issues while transacting with digital money
Low cyber risk literacy
Awareness gaps of new age risks
Absence of cybersecurity solutions accessible to all citizens, irrespective of their level of cyber literacy
Regulatory Hurdles 🔴
Stringent bank requirements
Difficult onboarding
Complex data protection needs
Rising cybercrimes
Tech Solutions 🟢
UPI and Sahamati platforms
UIDAI (Aadhaar) for uniform identity
Privacy Enhancing Technologies (PETs)
Transparent, auditable & programmable consent
Impact 🟢
Easy onboarding
Access to safe credit and savings
Secure financial data
Resilient digital infrastructure
Way Forward
Privacy Enhancing Technologies (PETs) offer a promising solution by providing a standardized, transparent framework for data sharing.
PETs should be designed to accommodate the diverse literacy levels and socio-economic backgrounds of users, ensuring that privacy is accessible to all.
Drawing parallels from financial inclusion, where technological solutions rapidly addressed India's multifaceted barriers, PETs can similarly bring the level of standardization needed to harmonize diverse privacy needs, enhancing both data security and inclusivity.
How Silence Laboratories aims to tackle financial privacy challenges
Silence Laboratories employs a two pronged approach to tackle the financial data privacy challenges:
Programming consent: Instead of consent being a mere checkbox item, Silence Laboratories aims to integrate consent as a programmable function into the very fabric of data processing systems ensuring data usage aligns strictly with the purpose, redesigning consent for:
Harnessing Innovation for Privacy Assurance: Silence Laboratories relies on cryptographic techniques based on Privacy Enhancing Technologies (PETs) to allow multiple organizations to process data in a privacy friendly way without compromising its utility, guaranteeing:
