Open banking is around the corner in the UK and recently the CFPB released guidelines on data sharing that has banks concerned about cybersecurity; Kathryn Petralia, chief operating officer of the online lender Kabbage believes banks and Fintechs should be held to the same standard regarding data; concerns over data include responsibility on data breaches, encryption and entry points for hackers; as data sharing becomes the norm both banks and fintechs will need to protect themselves at many levels. Source.
Credit bureaus have had a tough past year with the Equifax breach of customer data and new legislation in the U.S. looking to increase competition by allowing lenders to use different sources; changing the credit bureau system is not as easy as it may sound as they have been intertwined in the financial services system for a long time; lenders still use the bureaus for a large majority of lending decisions, even though some alternative bureaus have seen traction; the breach at Equifax could have a lasting effect because people did have a lot of trust in the company to secure their sensitive information like social security numbers; as data sharing in financial services becomes commonplace a premium will need to be placed on how that data is secured. Source.
Level39 has launched Cyber39, a program focused on fighting cyberthreats in London; Cyber39 will initially involve the 22 cybersecurity companies associated with the Level39 startup accelerator and it hopes to add more companies; additionally Level39 has also opened the Cyber Demonstration Centre in Canary Wharf with the support of the Department for Digital, Culture, Media and Sport, and the Department of International Trade; the accelerator's efforts are aimed at building out cybersecurity solutions in the private sector and keeping London at the forefront of cybersecurity innovation. Source