Data privacy may be a hot topic right now, but we’re not talking about it because it’s trendy — we’re talking about it because it’s central to the BABB proposition.
If you prefer to watch rather than read, you can also check out this video of Rushd talking to Annie about BABB’s approach to data privacy…
We have just had received approval from the UK Intellectual Property Office of our application to patent BABB’s data privacy technology. This is fantastic news, because it means the patent is available and we can get in first and claim the intellectual property.
Privacy by design
In the BABB app we will implement privacy by design. Privacy by design means that the user is in control of their data, rather than the organisation. By default, users decide which data they disclose and to whom. BABB customers will have ownership of their data and give their explicit consent to share it.
In the future we may implement a data monetisation mechanism, wherein customers can choose to charge to give third parties to access to certain data. We are building the system architecture in a way which allows us to implement this feature later.
What about KYC information?
When it comes to the data collected to carry out KYC (know your customer) checks, the user will provide BABB with very limited access to their personal information in order to verify their identity. This information varies depending on which tier of account they are opening, and includes information such as your name and passport data.
This data is only accessible by the regulator, for example the FCA, to ensure we comply with KYC and AML (anti-money laundering) regulations. BABB cannot mine or sell the data provided by the customer as part of the KYC process.
BABB and GDPR
BABB is natively compliant with the GDPR (General Data Protection Regulation), which is a new piece of European legislation which has just come into force, stating that users must give explicit consent for their data to be used.
We comply by elevating customers to the role of data controllers. In most cases, the bank or ecommerce platform or insurance company is the owner of the data and the controller. We give the control to the users and we only process the information if they give us permission.
BABB will launch to markets beyond Europe within two years, meaning our European-standard data protections will be applicable universally. Some governments in emerging markets have not yet implemented any regulation for data privacy and protection, and we intend to blaze a trail in this area.
Technology basis
BABB uses a consortium-type blockchain which allows us to be compliant and share data with regulators. This type of system enables accessibility for three parties: customers, BABB and regulators.
Our data privacy mechanism is based on smart contracts to automate the data flow in the platform, making it far quicker and more efficient than current data processing mechanisms used by banks, with less friction and lower costs.
Patent pending
BABB’s approach to data privacy is new and very different to the industry standard, and as such our intellectual property needs to be protected. We have applied to patent this data privacy technology and we have received approval of our application, meaning the patent is now pending.
We now have one year to design, test and implement the technology and demonstrate the process to the patent office and regulators. We’ll keep you updated with our progress towards getting this patent granted.
In a nutshell…
We take privacy very seriously, especially in light of recent scandals. We have learned from the experience of the market, and decided that the best approach is to give the control to the users and empower them to decide how their data is used.
