Under the theme of “Privacy-Preserving Computing: confidential and reliable data circulation promoting digital transformation of commercial banks”, the 5th session of Huarui FinTech Salon, jointly organized by International Monetary Institute (IMI), Renmin University of China and RUC FinTech Institute, was held on December 25 online. The keynote speech was delivered by Li Zhaoning, Dean of FinTech Academy and Managing Director of Internet Finance Department of Bank of Communications. Several experts exchanged their opinions on this subject, including Zeng Gang, Director of Shanghai Institution for Finance & Development; Wei Tao, Vice President and Chief Technology Security Officer of Ant Group; and Li Jian, director of Research Department of China Banking Association. The seminar was moderated by Qiu Zhigang, IMI Senior Research Fellow and professor of School of Finance, RUC.

The keynote speech given by Li Zhaoning was themed on “Privacy-Preserving Computing: confidential and reliable data circulation, promoter of digital transformation of commercial banks”. He explained the contribution of privacy-preserving computing to digital transformation of commercial banks from both macro and micro perspectives, by introducing the current tendency of policies, the features and evolution of this technology and the examples of its application in finance. With the CPC Central Committee placing increasing emphasis on data factor and security, the planning and criteria of these two elements have reached higher standards. Meanwhile, the legal environment has also been improved to better protect data security and privacy. In such context, confidential and reliable data circulation has become a key factor with which financial institutions can better serve major national strategies.

Privacy-preserving computing is a computational theory and method of protecting private information during its full life cycle. As a computational model and an axiomatized system, it serves to measure the information privacy, calculate the cost of privacy leakage, and protect the data security in case of separation of ownership, management and usage rights of private information. It also revitalizes the data privacy analysis. This tool helps protect private data, avoid excessive data circulation and improve information security. At present, privacy-preserving computing holds an essential position in the top-level design of FinTech. This calls for improved technological standards and further efforts by financial institutions in this area, as well as more projects for its application.

There are three suggestions on the application of privacy-preserving computing to financial sector. First, we should establish privacy-preserving computing platforms on company or institutional levels. Second, in the long term, the calculation should be mainly based on plain-text, with private data computing as a complement. Third, the cooperation in this domain should abide by law.

In a word, the new approach of secure and reliable data circulation, empowered especially by private data computing, along with its derivative solutions, serves to “keep the data invisible and independent during its utilization, which becomes controllable and measurable”. Without supportive policies or infrastructures, this progress would not have been made. For further progress, we should also respect technological ethics and ensure equal rights for each agent of data utilization.