Ethical Use of Financial Data: Balancing Innovation and User Privacy with Noda

Lasma Kuhtarska, Co founder, Chief Strategy Officer at Noda

Leveraging open banking data comes with ethical considerations of keeping this data private and secure. We talk to Lasma Kuhtarska, Co-founder, Chief Strategy Officer at Noda, about balancing innovation with data privacy in the realm of open banking.

• What are the key ethical considerations Noda takes into account when utilising open banking data? What best practices has Noda established in this regard?

Noda stores all the data accordingly with the latest regulations, which means it is completely safe for end customers to pay and sign-up via Noda.

Firstly, we store data for a limited amount of time, maximum of five years. We work with encrypted data, so it is cannot leaked. Our servers are built and protected by key global top-suppliers. We never share customers’ sensitive data to any third party. Our employees have limited access to customer data, plus they have been trained to work with personal and financial data.

• How do products like Noda’s KYC ensure the data privacy of users?

As Noda use third-party to process verification – we do not store any personal details. Only basic information and verification results. Plus, our normal protection mechanisms are at place such as encryption and employee education.

• Is there an essential conflict between ethical considerations of data privacy and innovation in open banking? Can you provide tips on how companies can innovate without compromising data privacy?

Not really, because open banking does not generate any new data or processes that could lead to an ethical conflict. Open banking is nothing mroe than a new form of working with data that customer banks’ have been holding for decades.

Another important aspect is customer consent. Data sharing happens strictly with consumer consent and there is an option to opt out. Therefore, customers have a choice whether to use open banking or not, which gives them more control over their information.

Innovation and strict data privacy must go hand in hand, and the latter doesn’t exclude the former. My advice would be to be fair and transparent to your customers: guide them what data do you need and why you need it. Store data securely with minimising the risk of unauthorised access and be responsive when a customer asks you to delete their data. You should always choose reliable providers who you trust, and the rest will be done by open banking.

• What future developments do you foresee in the ethical use of financial data in open banking?

At Noda, we truly believe that open banking and its principles are still quite new. Eventually, more people will find it useful, insightful and simply discover that it makes their lives easier, so the customer adoption is set for growth. Also, we think that key market players including banks and data providers will support these initiatives, and together we can bring really positive changes into the market and make people feel comfortable and safe working with financial data.

About Noda

​​Noda is a global open banking provider that assists online merchants with end-user KYC, payment processing, LTV forecasting and UX optimisation. We partner with 16,500 banks across 27 countries, spanning over 30,000 bank branches.

With Noda’s advanced Open Banking API, online businesses can easily integrate direct bank payments, offering their customers a seamless and secure payment experience with lower fees. Whether you’re looking to enhance customer verification processes, optimise payment systems, forecast long-term value, or refine user experience, Noda is your partner in growth.

Learn more about Noda.