Are you ready for data portability?

Imagine applying for a new credit card and getting it approved without filling in tedious pages of information, or going to a medical specialist for a second opinion without lugging stacks of printed reports along?

These are just some of the possibilities that the future might offer, in a world of true data portability where individuals can request for their data to be transmitted seamlessly between organisations.

Some hurdles must first be overcome to realise this vision. For a start, the relevant machine-readable data standards must be crafted and be in widespread use. Practically, this means that the pertinent data structures must first be defined and agreed on by a broad swathe of the industry, as well as the creation of a mechanism to facilitate the approval and secure transfer of data between validated parties.

Genuine data portability promises immense benefits to businesses and consumers alike. It reduces barriers to competition and levels the playing field for new businesses, particularly in circumstances where data is an important metric. Moreover, individuals gain greater control over their personal data and will likely enjoy more vibrancy in competitive offerings.

When fully adopted, data portability removes traditional barriers to consumers such as having to key in their personal data when switching providers. This culminates in lower costs, improving choice and customer experience. For instance, customers can move to a new streaming provider without fear of losing their playlists, or switch utility providers with the click of a button. And because historical data can be transferred if desired, this can be done with no impact on personalisation.

Cognizant of the many benefits, the Personal Data Protection Commission (PDPC) in Singapore launched a public consultation in 2019 to seek views on its proposed data portability and data innovation provisions¹. There is no question that data portability is inevitable, so what can businesses do to ready themselves for the future?

The digital-centric nature of data portability means that businesses can prepare themselves for data portability as part of their digital transformation (DX) initiatives. Indeed, the ability to properly and seamlessly manage data across the entire organisation is arguably a key prerequisite for successful DX. Among others, this means breaking down existing silos of data, integrating orphaned databases, and rationalising information systems to reflect a single source of truth.

For organisations that are still stuck on outdated systems or processes, data portability represents an opportunity to finally embark on their DX journey. With modernised, highly scalable platforms and a redesigned backend that combines diverse data sets, businesses can implement meaningful improvements to their existing systems while preparing themselves to leverage the benefits of a data portable future.

In a perfect world of data portability, an insurance company might offer better premiums to users who keep fit based on data from their fitness tracker of choice. A bank might offer better interest rates to entice new customers with a proven track record of paying diligently, and digital marketers can benefit from an improved ability to target their marketing efforts at relevant consumers.

For this to happen, various barriers must first be addressed. Concerns over cybersecurity must be met, especially those around the security and management of the ported data. Unavoidably, the diverse range of organisations accessing this pool of data and will likely have disparate data management and cybersecurity capabilities. This means that some form of accreditation and validation system must be created to offer a minimum level of data protection.

Finally, data portability represents an overlap between data protection and competition laws that can only be adequately addressed through new laws. After all, the data can potentially be abused for nefarious ends, such as predatory pricing tactics that target specific competitors, or to pilfer customers’ records without their explicit permission. To prevent abuse, robust regulations must be in place.

By facilitating and encouraging a greater flow of data, data portability can offer great benefits to not just consumers, but also for businesses. Are you ready for data portability?

Speak to us to get started. 

¹ https://www.pdpc.gov.sg/News/Latest-Updates/2019/05/Public-Consultation-on-Proposed-Data-Portability-and-Data-Innovation-Provisions