[Part 1] The third way of data utilization: "information banks" bring about a society where philosophy and ideas compete

Japan's data utilization is starting to move forward in a big way. The Digital Agency was launched in September 2021. The revised Personal Information Protection Act is scheduled to come into effect in April 9.

While GAFA and BAT (Baidu, Alibaba, Tencent) dominate the global economy, Japan has been called a "data underdeveloped country." Japan has come up with "information banks" as a way to balance the protection and utilization of personal data. They are attracting attention from around the world as a "third way" where personal information is neither monopolized by specific companies nor managed by individuals at their own risk. What are the benefits that companies and individuals can gain from the spread of information banks? What is the new image of society that will emerge from them?

"All about Information BanksWe spoke with Masahiro Hantani, author of "The Personal Data Utilization Revolution" (Diamond Inc., 2019) and a leader in the field of personal data utilization at NTT DATA Corporation.

This article will be delivered in two parts. (The second part isclick here）

NTT DATA Corporation
General Manager, Financial Business Promotion Department, Digital Strategy Promotion Department
Masahiro Hanatani

Joined NTT DATA Corporation (then) in 1996. Until 2004, was mainly involved in overseas business in Singapore and Malaysia. Since 09, led the creation of new businesses related to My Number within the company. Since 16, has led the creation of new businesses such as personal data business and blockchain business. In 18, he was a member of the Data Collaboration Infrastructure Sub-Working Group of the Council for Science, Technology and Innovation, Cabinet Office. Member of My Data Global.

Information banks are an innovative step for Japan, a data-deprived country

── When talking about the use of personal data, the phrase "Japan, a data-developing country" is often used as a preface. Is Japan really "lagging behind" in the field of personal data utilization?

It is true that there are many areas where Japan is lagging behind, but there are also areas where Japan is not lagging behind. Let me talk about these from two perspectives.

First, let's talk about the "lagging behind" aspect.

In January 2011, the World Economic Forum"Personal data is the second oil"When the US announced that it would use personal data to build businesses that would utilize that data (*1), many countries and companies began to move into businesses that would utilize personal data. The first to act were GAFA, followed by BAT. We have unknowingly been incorporated into the ecosystem they have built in which certain companies collect and utilize large amounts of personal data, and as a result, our lives have become much more convenient.

In response to this trend, Europeans have raised objections to the situation in which their data is being sucked up by the giant US platforms, arguing that personal information belongs to individuals and should be managed by individuals, not specific companies.

In the United States and China, certain companies hold large amounts of personal data, while in Europe, individuals manage their own personal data.In recent years, there have been two major trends in the discussion surrounding personal data.Japan is completely behind in this trend regarding the handling of personal information.I have to say.

Japanese companies are lagging behind not only in the "protection" of personal data, but also in its "utilization." The idea that "it is important to utilize data" is only just beginning to take hold. Even if you understand that it is important, you don't know how much and what type of data your company has. You don't know what you can do with the data. The reality is that many Japanese companies are unable to move forward from this state.

On the other hand, what are the aspects that are not lagging behind?

That is the main theme of this article: information banks.
An information bank is a personal information depository system originating in Japan whereby personal data is "deposited" like money, entrusted to the bank for management, and in return receives "benefits.".

Information banks are certified by the Information Technology Federation of Japan, a general incorporated association, based on guidelines established by the Ministry of Internal Affairs and Communications, and are operated by private companies in accordance with policies set by the government. Rather than one company monopolizing data, they will "accept personal data from individuals and provide it to companies as needed."Its unique feature is that it acts as an intermediary.

In the United States and China, one company holds a large amount of personal data, while in Europe, individuals manage their own personal data. Information banks can be said to have taken the best of both worlds.The "third way" of utilizing personal dataThere has been a great deal of interest in this field, with various inquiries coming in from around the world, and similar business models are also being considered in the US and the UK.Japan is at the forefront of the movement towards the concept and implementation of information banks.It can be said.

── What do you think are the reasons why Japan has decided to take the "third way" of establishing information banks?

Many people are of the opinion that "a country should manage and utilize its own data in order to compete with other countries," but I have a slightly different opinion. When I think about information banks, the starting point is the current situation in which "regions are losing vitality as the population ages and the birthrate declines."

For example, in Gifu City, Gifu Prefecture, where I spent my junior high school days, the city bus that I used to take to school every day went out of business recently. Fortunately, a private company bought the route and is continuing to operate it, but if they hadn't bought it, the area would have lost all transportation.

Looking at this situation, I thought, "This kind of thing happens,Existing resources are not being used efficiently"Isn't that the problem?" I thought to myself. Even as the city undergoes various changes, things like bus routes and the number and locations of bus stops are rarely revised. If we could make improvements quickly based on data, such as "A new shopping center has opened, so let's review the bus routes to increase the number of users," we could make the most of the existing resource of bus routes and continue to provide a comfortable lifestyle.

Let's take another example. Suppose there is a person A who lives in a mountainous area and goes to a hospital in the city. If the information that "A goes to the hospital every Thursday morning" is shared in some way, a delivery truck that comes to deliver a package to the mountainous area may be able to pick up A and take him to the hospital.

If this were to become a reality, wouldn't it be extremely efficient? The free space in the delivery truck after delivering the package would be converted into the fare for transporting Mr. A to the hospital. This would be beneficial for both Mr. A and the delivery company.

In an aging society with a declining birthrate, we need to make effective use of data like this to maintain current levels of happiness and economic well-being.Information banks promote the use of personal data not to compete with other countries, but to enrich people's lives.I think

(*1) Ministry of Internal Affairs and Communications, "26 Information and Communications White Paper" (2014)
https://www.soumu.go.jp/johotsusintokei/whitepaper/ja/h26/html/nc133000.html

The essence of information banks is not the "entrustment" of personal information but its "management"

── By effectively utilizing personal data, society as a whole can be optimized, creating a win-win situation for both companies and individuals. This is the world where personal data stores operated in Europe are(*2)It seems like this could be achieved, but what is the difference between a personal data store and an information bank?

The difference between a personal data store and an information bank isWhether or not there is a function to screen the parties to whom the data is provided.

This is exactly the same as what banks do in the financial world: when banks extend loans, they check the borrower's company from various perspectives, such as whether it has any ties to anti-social forces or is at risk of bankruptcy. "Is the company providing the data a problem-free partner? Is there a risk of it being lost or misused?" - the screening function of information banks will alleviate one of our concerns regarding the distribution and utilization of personal data.

This function is not implemented in the personal data store. The personal data store is like a "safe deposit box" in a bank. It is an extremely simple system that provides a safe place to store data. Individuals are responsible for storing, withdrawing, and using their data. It is a system that is typically European, with an "individual-centered" value system as its backdrop.

As a result, Europe is currently facing the problem of data utilization not progressing as expected. People are of the opinion that "we have taken the trouble to store our data in a safe place, so we would like to avoid sending it out." Although the psychological hurdle for Japanese people regarding the distribution and utilization of personal data is very high,The mechanisms and systems in place are far safer and more secure than those in Europe, and an environment that makes it easier for data to flow is being created.I think.

(*2) Personal data store: A storage place for personal data that is necessary for individuals to recover and store and manage their own information (everything from attribute information such as name and address to purchasing information such as when and what was purchased, which was previously managed by the companies) that has been managed by companies.

── It seems that information banks are planning to not only store personal data but also manage it.

When it comes to money, it is common practice for banks to "professionally lend and manage the money they receive from us, increase it, and give it back to us." Currently, no certified information banks have begun "management," but it is entirely conceivable that information banks will provide similar support, and some certified businesses have actually formulated business plans that include management.

The difference with money is thatThe individual's permission is always required when using information (providing it to a company)That's the only point.

This is a very personal example, but for the past 10 years or so, my uric acid levels have been extremely high, and I'm at risk of developing gout at any time, but fortunately I've been able to lead a perfectly healthy life. For example, if the data of someone like me was deposited in an information bank, the information bank could make me an offer: "Your data is very rare, so why not provide it to pharmaceutical company A? We may be able to develop a better drug for gout based on your data." If I give my permission, pharmaceutical company A will pay me for my rare data, and a portion of that will be returned to me. This is an example of how information banks "manage" data.

── Information banks, which screen data recipients and support data management, seem to be a system that makes it easy for even people with low levels of data literacy to utilize personal data.

I believe that the Ministry of Internal Affairs and Communications and the Ministry of Economy, Trade and Industry had these very considerations in mind when they proposed this concept. The European-style personal data store, in which individuals must bear a lot of risk, is a very harsh system for Japanese consumers.

Looking at the Japanese financial market, many people are entrusting their asset management to third parties, such as through investment trusts and savings. Given this background, I imagine that a system in which an intermediary player provides support, in other words, an information trust system known as an information bank, was conceived. (Continue to the second part）

[Interview and text] Chiaki Saito
[photograph]Daisuke Koike
[Planning and editing] Yuko Kawabata (XICA)

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If you would like to gain a deeper understanding of the utilization of personal data and information banks, please also read the following articles.

*This will take you to an article from OctoKnot, a media outlet operated by NTT DATA Corporation that creates the future of finance and the world through finance and digital.

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