On 8 March 2024, the FCA issued a report by the Synthetic Data Expert Group which discusses how synthetic data can be used to overcome data challenges and its practical applications in financial services. In particular the report focuses on 3 key themes across the data lifecycle:

  • Data augmentation and bias mitigation system.
  • Testing and model validation.
  • Internal and external data sharing for fraud controls.

The FCA set up the Synthetic Data Expert Group in March 2023. The group brings together 21 experts from across financial services, public sector, data and technology vendors, and consumer groups to further explore the use of synthetic data in financial markets.