Synthetic data is an artificial data set that mimics the original data but removes the personal or other sensitive information that may be included in the original data. Raw data is run through special algorithms and generators to create new data sets that cannot be traced back to the original consumer or transaction.
For financial services businesses or product owners, synthetic data can be generated on a one-to-one basis so that the final synthetic data set represents the original set field-for-field, but without the privacy risks. This “new” data set can then be safely used for performance analysis, benchmarking, forecasting, or product development, producing results as valid as using the original data and at no risk of misuse of personally identifiable information (PII).
This Impact Brief from Aite Group highlights Facteus’ Mimic and Data Platform products and the value potential for financial institutions, payment companies, and fintechs in leveraging synthetic data for internal analytics, competitive benchmarking, and data monetization.