This report provides insights on assessing and mitigating common challenges associated with synthetic data use.
Who this is for
This report is likely to interest:
- Synthetic data practitioners.
- Those working with, or exploring, synthetic data across financial services.
Synthetic data in financial services: our work
Synthetic data offers a powerful way to unlock the value of data, enable experimentation, model development, and broader innovation across the financial system – all while maintaining strong privacy protections and public trust.
Recognising this technology’s potential, we set up the Synthetic Data Expert Group (SDEG)[2] in March 2023. The group brings together 20 experts[3] from across financial services, public sector, data and technology vendors, and consumer groups to explore synthetic data use in financial markets.
The SDEG’s first report, Using synthetic data in financial services[4], examined 6 use cases for synthetic data in financial services. It aimed to help practitioners understand the tools, techniques, opportunities and practical challenges associated with synthetic data.
This second report builds on the considerations outlined in the first paper and responds to key feedback to our 2022 Call for Input[5].
The report is not guidance, rather it highlights insights and best practices identified by SDEG members.
The considerations and actions to assess, manage and mitigate identified are non-exhaustive and will develop as synthetic data usage expands. However, they show how synthetic data considerations can fit within, or complement, existing governance frameworks for conventional models and data usage.