On July 17, the King’s Speech announced the ‘Digital Information and Smart Data Bill’ (DISD). The previous version (DPDI) of the bill, despite making progress, did not make it through parliament before the election but it has now seen a revamp and fresh commitment from the new government.
The bill promises to accelerate data sharing and unlock innovative uses of data, while ensuring protections are in place to protect consumers, citizens and businesses, across the economy. This is supported by the work of the Smart Data Council.
According to the government, the bill will “enable new innovative uses of data to be safely developed and deployed and will improve people’s lives by making public services work better by reforming data sharing and standards; help scientists and researchers make more life enhancing discoveries by improving data laws; and ensure data is well protected by giving the regulator (the ICO) new, stronger powers and a more modern structure”
Looking beyond Open Banking
One of the more notable areas of the bill is its reference to ‘Smart Data Schemes’, which would make it easier to securely move data between organisations. In a similar vein to Open Banking, these schemes will allow customers to share their account information with third parties. This could shape how customer data is shared and unlock innovation in fields beyond Open Banking: “by empowering consumers to share their data with sectors we also hope to encourage the economic growth we’ve seen from Open Banking, across the economy”.
“As we accelerate into a data-enabled future, Smart Data Schemes will become integral to economic growth and we must address data rights at their foundation. Schemes in areas such as Finance, Energy, Transport and beyond will enable interoperability between our real and financial economies while protecting both businesses and consumers.”, Gavin Starks, CEO, IB1
For instance, with a smart data scheme in place, a consumer might decide to share detailed data on their energy usage patterns with a third party provider. The potential benefits of this might manifest in tailored energy plans, energy demand response systems, improved efficiencies and to support reductions in carbon footprint. What’s more, with a robust and cohesive legislative backing, smart data schemes will have the comprehensive foundations they need to create real impact.
Regulatory foundations to build confidence
A clear regulatory framework for data sharing, coupled with a desire to minimise the amount of data collected or shared, could help build confidence in sharing data. Data minimisation means organisations must only share, store and use the data that they need to help make recommendations and/or decisions that create positive outcomes. It also means reducing the risk of oversharing, or holding onto sensitive information that could have unintended consequences.
“We have entered an era whereby data rights are central to unlocking value and protecting everyone. The same data may be used for many different purposes and by different actors, with different consequences and liabilities.”, Emily Judson, Head of Research, IB1
Led by the Department for Science, Innovation and Technology (DSIT), the bill has been endorsed by the likes of the Centre for Finance, Innovation and Technology (CFIT) and Open Banking. Top of its list of recommendations for improving SME lending to drive economic growth, CFIT has expressed a willingness to ‘Prioritise the Digital Information and Smart Data Bill’.
At IB1, we strongly support the development of Smart Data in the UK. It is highly aligned with our work on Open Energy, STREAM, Perseus, SERI, and other areas.