Zhejiang Lab

Finance Apps Need Privacy Computing to Avoid Privacy Leakage

Connecting to public Wi-Fi, scanning QR codes, clicking on links, and downloading apps… these “normal actions” in the Information Age have caused big problems for the security of personal information.

At the 2020 West Lake Cybersecurity Prospective Summit held on May 20, Doctor Na Chongning, a Senior Researcher from the Zhejiang Lab Fintech Research Center, gave a presentation entitled “Financial Data Security and Privacy Computing.” He explained the integration of privacy protection technologies and AI algorithms, and introduced privacy protection solutions for China’s Intelligent Finance New Infrastructure projects.

Financial institutions are facing two major challenges in privacy protection. First, they need to ensure that their own data (including personal data stored in financial institutions) will not be illegally misappropriated. Second, they cannot use personal data at the cost of personal information leakage, and all operations must be in compliance with privacy protection regulations such as the General Data Protection Regulation. Although the EU, the US, Japan, Australia, and China have announced laws and regulations for data privacy, which have showed remarkable effects, policies alone cannot solve the problem of privacy leakage. In addition, one-sided emphasis on privacy protection is likely to form data silos and harm the circulation, integration, and utilization of data.

According to Doctor Na, privacy computing is able to allow effective computing on data while private information is covered up. It is a technology that enables financial institutions to lawfully make full use of personal financial data. Recently, as the National Development and Reform Commission has further defined the range of New Infrastructure projects, data centers have become an important part of China’s information infrastructure. Regarding the risk of data leakage in data centers, Doctor Na believes that privacy protection mechanisms should be incorporated into the planning and design of data centers, so as to ensure data security from the early stages of the construction of New Infrastructure projects. To further explain this idea, he introduced a comprehensive system for financial data privacy protection, which includes data layers, computation layers, interaction layers, and application layers.

Doctor Na believes that China’s New Infrastructure projects need a complete security system for information and network infrastructure such as 5G networks, data centers, the Industrial Internet, and the Internet of Things to address issues including cybersecurity and data security. Therefore, data security and privacy mechanisms will also be an important part of New Infrastructure projects.