When to use Privacy Enhancing Technologies (PETs) vs. privacy management tools in Banks?

A more common question today is "whether privacy enhancing technologies should be used in conjunction with privacy management tools?". Privacy enhancing technologies are tools that can be used to protect data, such as encryption or masking. Privacy management tools are tools that can be used to manage who has access to data, such as access control or discovering where personal data resides. Both types of tools can be used to protect data, but they should be used in combination for maximum protection.

Privacy-enhancing technologies (PETs) protect personal data and empower individuals while minimizing risks associated with data use. Examples of popular privacy-enhancing technologies include encryption, anonymization techniques, secure multi-party computation, and differential privacy. More commonly used techniques include Cryptographic Technologies, Obfuscation Technologies, Statistical Technologies, and Systems-Based Accountability Technologies,

These technologies help to safeguard personal data by ensuring that it is stored, processed, and transmitted in a secure and privacy-preserving manner. While it is true that PETs offer many benefits, there are also some potential drawbacks. For example, PETs can be more difficult to use than traditional technologies, and they can also be more expensive.

Additionally, PETs may not be suitable for all applications, and there may be situations in which they are less effective. Striking the right balance between privacy and data utility can be challenging and require the right skills to put operating rhythms that work for the organization.

Certain characteristics of PETs are

1. Provide parties with the ability to collaborate while ensuring that any shared data is used only for its intended purpose.
2. Analyze private data without disclosing its sensitive contents.
3. Protect data-at-rest, data-in-motion and data-in-usage
4. The data storage duration of PETs is limited to what is necessary to fulfill the intended purpose.
5. In the lifecycle of data, PETs maintain the confidentiality and integrity of data.

As per a Data Security Council of India (DSCI) report, PETs can be deployed across data lifecycles to meet regulatory requirements while championing data privacy at the same time. To ensure seamless compliance with data protection laws, organizations need a comprehensive 'Data Management and Governance Platform'.

Privacy Management Tools:

These tools are solutions with a broader focus on managing an organization’s data along with added capabilities to manage privacy, compliance, and risk.

1. Data Governance Platform: is a comprehensive solution that helps organizations manage and control their data assets effectively. It caters to data lifecycle management, policy enforcement and compliance, metadata management, data cataloging and discovery

2. Consent Management System: is a software solution that helps businesses collect and manage personal information and consents in accordance with data protection laws and regulations. These platforms allow users to determine what data they are willing to share and grant explicit consent for data collection, especially through cookies while browsing websites and apps

3. Privacy Impact Assessment (PIA) Tool: is a decision tool used by organizations to identify and mitigate privacy risks associated with data collection and processing. Here are the key points about PIAs:

4. Data Mapping and Inventory Tools: Data mapping and inventory tools play a crucial role in data governance by providing organizations with a comprehensive understanding of their data landscape. These tools enable organizations to identify and document the location, flow, and characteristics of their data, including sensitive information. By having a clear view of their data, organizations can effectively implement data protection measures, ensure compliance with regulations, and make informed decisions regarding data management and privacy.

Privacy Enhancing Technologies (PETs) protect data at the operational level, while privacy management tools ensure compliance, risk assessment, and alignment with organizational policies.