1、Using Synthetic Data in Financial Services The Synthetic Data Expert Group March 2024 Sign up for our news and publications alerts See all our latest press releases,consultations and speeches.Contents Executive Foreword 4 1.Introduction 6 2.Context and background 8 3.Theme and use cases 12 4.Theme 1

2、:Data augmentation and bias mitigation 13 5.Theme 2:System testing and model validation 20 6.Theme 3:Internal and external data sharing 29 7.Considerations of creating synthetic data 36 8.Conclusion 38 9.Next steps 39 Appendix 1 Group members and acknowledgements Appendix 2 FCA synthetic data journe

3、y Appendix 3 Glossary Appendix 4 References About the Synthetic Data Expert Group The Synthetic Data Expert Group(SDEG)is a specialised sub-group of the Innovation Advisory Group(IAG)and was established in February 2023 by the FCA Innovation department.It operates under the guidance of the IAG Terms

4、 of Reference and chaired by the FCA.The SDEG helps to foster collaboration across industry,regulators,academia,and civil society to advance the responsible use of synthetic data to shape digital markets to achieve good outcomes and digital transformation at the FCA.The SDEG was launched in March 20

5、23 and plans to run until November 2024.The SDEG is comprised of 21 members who were selected against a set criterion,in an open and competitive process.The group explore issues surrounding the use of synthetic data in UK financial markets by identifying relevant use cases,key theoretical challenges

6、 and sharing practical experiences of using synthetic data.Additionally,the group has provided valuable feedback on FCA projects involving synthetic data.More information on SDEG membership can be found in the Appendix.3 Disclaimer This report has been collectively authored by members of SDEG and co