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Pinsent Masons Provides Breakthrough Legal Advice

Pinsent Masons has provided the legal advice in a set of new reports recommending the latest innovation in the burgeoning technology of data trusts.

The reports, ‘Food Data Trusts: a framework for sharing information’, produced by the Internet of Food Things team at the University of Lincoln and Food Data Trust – Legal, Structuring and Governance, written by Pinsent Masons, both commissioned by the Food Standards Agency propose a breakthrough technology to resolve longstanding issues of consumer confidence in food labelling, origins and authenticity and the legal framework to support this.

The proposal is for a data trust framework under which businesses at all points in the food supply chain, from growers and manufacturers to retailers, can safely share selective in-house data. This could significantly improve supply chain processes while boosting consumer confidence about where foods come from, how sustainably they’re sourced and their authenticity.

The legal report, written by a team of data experts from Pinsent Masons including Andrew McMillan, Sarah Cameron, Michele Voznick, Lauro Fava, Chris Martin, Angelique Bret and Brendan Ryan, sets out the necessary collaboration agreements underpinning a data trust framework.

Professor Simon Pearson, Professor of Agri-Food Technology at the University of Lincoln, said: “It’s easy to understand why businesses are reluctant to share such commercially sensitive information. No one wants to reveal their advantages to their competitors. But, in the data age, this reluctance is holding up much-needed advances.

Sharing data in a secure and limited way can help to expose and tackle problems from incorrect labelling and widespread food fraud to tracing contaminated food, as well as speeding up product recalls.”

Importantly, the framework is not a data trust itself: it is a mechanism to manage data trusts, which might be decentralised, diverse data collections.

It is designed to control the way that data may be exchanged across data trusts that are linked temporarily, to ensure that information can be shared securely for example between regulators and other government departments that need to exchange secure and trustworthy data.

It also provides great potential to connect with AI services in order to provide access to dynamic and fresh data in return for immediate AI-derived information that could benefit the interconnected participants in the supply chain.

The report follows Pinsent Masons’ work on the Open Data Institute’s and Government Office for AI’s ground-breaking data-trust pilots, looking at how data trusts can be used to tackle major global challenges.

How Engineers Are Helping Modernise Banking

Cryptocurrency is the poster child of “disruptive technology”. But, there are other areas where software engineers must update business-as-usual in banking in order to survive.

According to one survey, 80% of bankers agreed that their institution “needs to complete an assessment over the next three years, but only 15% expected that to lead to a modernisation effort.” Security threats, the demand for mobile banking, and outdated core banking systems are all driving banks to consider massive overhauls to their information technology systems.

These are the biggest modernisation challenges facing financial institutions – areas where developers and remote software teams can play a significant role in keeping banks competitive.

Making Updates To “Legacy Structures”

In the same survey, 60% of bankers reported that at least one of their major technology challenges is directly tied to aging core systems. “Maintaining legacy systems accounts for 78% of a bank’s IT budget, and 70% of bankers feel their core processes cannot quickly adapt to change,” reports Ripple.

Over time, banks have resisted major changes to their core banking system, the backend system responsible for processing transactions, updates to accounts, and maintaining other financial records. Core banking systems are in charge of processing deposits, loans, and posting credits, as well as updating other reporting and ledger tools.

There’s no simple solution to updating a bank’s core system: it’s a massive technological undertaking, but one that banks must invest in to serve its customers well. Engineers can help banks develop an agile, consumer-centric approach to core banking.

There are multiple approaches to solving the problem of archaic core systems, and software teams can phase in iterative changes that evolve a bank’s core infrastructure without too much service interruption.

Modernising Fraud Protection

Fraud prevention remains one of the most difficult technological challenges facing banks as cybercriminals get more sophisticated in targeting consumers. To illustrate the challenge banks face in keeping consumer account information safe, Kasperky Lab hacked a “large, publicly-traded financial company in less than 15 minutes.”

To protect consumers from malware and fraud attacks, banks must shift from a reactive to a preventative operations approach.

Developers can help banks prepare by modernising the systems that store user data, moving information onto an encrypted cloud. IBM’s AI tool, for example, is said to offer a faster analysis of advanced persistent threats and attacks. Developers must integrate the latest technology into banks’ security systems to modernise.

Digital Account Opening

Developers will play a critical role in helping traditional banks keep up with the demands of customers on-the-go. Digital account opening is one process where developers and software engineers can have an immediate impact.

Many banks are capable of letting customers open an account online through a web browser. Yet, mobile-optimised account opening is an area where the industry has lagged behind. There are some very good reasons why this process is so difficult.

Application fraud and strict anti-money laundering laws make it difficult for banks to meet regulatory requirements. An, there are significant security risks: in 2018, banks faced a more than $31 billion in global fraud loss.

But developers who help banks modernise to provide DAO will have an immediate financial impact. One report found that 69% of those surveyed wish to perform all their banking through online and mobile channels. BAI found that around 75% of millennials and more than 65% of Gen Xers prefer to use a digital channel to open a deposit account.

The core consumer of the future will expect to be able to open an account, take out personal loans, and transfer funds from any device at any moment. Developers must find a way to build the infrastructure to allow banks to offer DAO.