On Apr. 18, UK GVT announced next steps for a smart data economy.
UK GVT Department for Business and Trade announced next steps towards UK Smart Data economy in banking, energy, finance, home buying, retail, telecoms, transport.
Follows UK GVT Jul. 2022, issued analysis of the benefits of smart data, see #144631.
Follows UK GVT Oct. 2023 launched call for ideas to harness smart data, see #189436.
Overview
Data Protection and Digital Information Bill will help UK GVT deliver safeguards, benefits for a Smart Data economy; this document sets out how UK GVT will use these new powers over coming year by identifying smart Data opportunities, challenges.
Priority sectors: banking; finance; energy and road fuels; telecommunications; transport; while other sectors of interest include retail; and home buying.
Smart Data unlocks data for individuals and businesses, allows businesses to easily access this data, with consumers’ consent, to provide new services that promote: investment, productivity, competitive outcomes, as well as economic growth.
UK GVT aims to build on, learn from Open Banking; in each priority sector, identify where regulatory intervention is needed, consult on use of Smart Data powers in Data Protection and Digital Information Bill; design potential scheme, proceed to implement.
Smart Data
Smart Data is the secure sharing of customer data, upon customer’s request, with Authorised Third-party Providers (ATPs); ATPs can then enhance customer data with broader, contextual business data, provided directly to ATPs or may have been open.
Explained customers may be individual consumers or business customers.
Smart Data relates to customer data & business data, e.g. related to products, transactions, service usage; is shared in specific formats, e.g. data standards.
Is accessible by ATPs with permission of customers; enables customer data to be actionable by ATPs, e.g. payments can be made on behalf of the customer.
UK CMA suggested Smart Data schemes require a regulatory framework to govern how data is shared; common and open data standards that reflect market dynamics, minimize risk to competition, consumer; also require data holder, third party, regulator participation; effective representation of consumers and other end users.
A funding model reflecting consumer interests; interoperability with other Smart Data schemes; as well as a practical framework for the delivery of schemes.
Banking Implementation
UK Treasury stated that it will use Smart Data powers in order to provide Open Banking with a long-term regulatory framework by laying secondary regulations.
Finance
Centre for Finance, Innovation and Technology (CFIT) published a blueprint for driving Open Finance forward in the UK, with recommendations for industry and government.
UK Treasury will consider CFIT’s recommendations to develops Open Finance strategy.
Energy and Road Fuels
ESNZ proposed road fuel price statutory Open Data scheme: PumpWatch (#204231).
Following analysis of the consultation and royal assent of the DPDI Bill, regulations will be laid to establish the scheme; UK ESNZ will publish a sector-wide call for evidence by end of summer 2024 and set out next steps in government response by Mar. 2025.
UK ESNZ will progress priorities complementary to Smart Data objectives, including delivering commitments from Energy Digitalisation Strategy and joint response to the Energy Digitalisation Taskforce; exploring feasibility of creating smart meter data repository through £1bn Net Zero Innovation Portfolio (NZIP); and publishing more detail on implementation of proposals for secure, smart electricity system.
Telecommunications
A consultation on Smart Data in telecommunications closed on Nov. 13, 2023 (see #185174); UK DSIT stated that it will set out next steps in spring 2024.
Transport
Department for Transport will progress work to support Smart Data objectives, including taking forward discovery work to develop transport use cases for Smart Data.
Using outcomes of discovery to shape evidence for a call for evidence in autumn 2024.
Publishing more detail on opportunities for Smart Data in the transport sector in 2025.
Retail
Department for Business and Trade (DBT) will engage formally with the Retail Sector Council and other trade associations in summer 2024 to discuss opportunities for Smart Data, before agreeing to next steps to progress Smart Data in retail in autumn.
Home Buying
By summer 2024, Department for Levelling Up, Housing and Communities (DLUHC) will launch pilot projects to inform future digitalization of home buying, selling process.
