ConsenTrack—Blockchain Based Framework for Open Banking Consent Data Tracking

Abstract

Consent management is most critical part of open banking. Customers, banks, third party service providers, regulators are various parties involved into this process. The recent data shows that open banking has not been greatly accepted yet by customers to the fullest capability. Recent surveys conducted on usage of open banking indicates the discomfort in customer mind about data sharing. Blockchain based framework implementation can bring the required transparency into the consent management process. To achieve that Blockchain technology needs to be embraced by banks and Third party providers (TPPs) to provide customers the open banking services in transparent manner. A blockchain based framework which can be easily integrated into banks’ existing technology landscape thus becomes need of the hour. Consortium permissioned blockchain based framework implemented in Corda is suggested in this paper which addresses challenges faced by customers and it tracks data sharing violation for communicating to customers. Data sharing between bank and TPPs happen as node to node transaction and regulatory bodies can have tracking of every such transactions as owner of Notary node. Based on the legal contract between bank and TPP, framework compares and finds out in real time if any data sharing violation happening. Real-time tracking of data sharing violation and communication to customer provides transparency into the framework which will boost customer confidence and trust into the system. Regulatory bodies need to actively own this part to share information with customers about the data handling if there is any violation.