Blockchain-based data privacy management with Nudge theory in open banking

Abstract

Open banking brings both opportunities and challenges to banks all over the world especially in data management. A blockchain as a continuously growing list of records managed by a peer-to-peer network is widely used in various application scenarios; and it is commonly agreed that the blockchain technology can improve the protection of financial data privacy. However, current blockchain technology still poses some challenges in fully meeting the needs of financial data privacy protection. In order to address the existing problems, this paper proposes a new data privacy management framework based on the blockchain technology for the financial sector. The framework consists of three components: (1) a data privacy classification method according to the characteristics of financial data; (2) a new collaborative-filtering-based model; and (3) a data disclosure confirmation scheme for customer strategies based on the Nudge Theory. We implement a prototype and propose a set of algorithms for this framework. The framework is validated through field experiments and laboratory experiments.