SynDEc: A Synthetic Data Ecosystem

Fabian Sven Karst (), Mahei Manhai Li () and Jan Marco Leimeister ()
Additional contact information
Fabian Sven Karst: University of St.Gallen, Institute of Information Systems and Digital Business
Mahei Manhai Li: University of St.Gallen, Institute of Information Systems and Digital Business
Jan Marco Leimeister: University of St.Gallen, Institute of Information Systems and Digital Business

Electronic Markets, 2025, vol. 35, issue 1, No 7, 28 pages

Abstract: Abstract Given the critical role of data availability for growth and innovation in financial services, especially small and mid-sized banks lack the data volumes required to fully leverage AI advancements for enhancing fraud detection, operational efficiency, and risk management. With existing solutions facing challenges in scalability, inconsistent standards, and complex privacy regulations, we introduce a synthetic data sharing ecosystem (SynDEc) using generative AI. Employing design science research in collaboration with two banks, among them UnionBank of the Philippines, we developed and validated a synthetic data sharing ecosystem for financial institutions. The derived design principles highlight synthetic data setup, training configurations, and incentivization. Furthermore, our findings show that smaller banks benefit most from SynDEcs and our solution is viable even with limited participation. Thus, we advance data ecosystem design knowledge, show its viability for financial services, and offer practical guidance for privacy-resilient synthetic data sharing, laying groundwork for future applications of SynDEcs.

Keywords: Synthetic data; Data sharing platform; Data ecosystem; Financial services; Data scarcity (search for similar items in EconPapers)
JEL-codes: M15 (search for similar items in EconPapers)
Date: 2025
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://link.springer.com/10.1007/s12525-024-00746-8 Abstract (text/html)
Access to the full text of the articles in this series is restricted.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:spr:elmark:v:35:y:2025:i:1:d:10.1007_s12525-024-00746-8

Ordering information: This journal article can be ordered from
http://www.springer. ... ystems/journal/12525

DOI: 10.1007/s12525-024-00746-8

Access Statistics for this article

Electronic Markets is currently edited by Rainer Alt and Hans-Dieter Zimmermann

More articles in Electronic Markets from Springer, IIM University of St. Gallen
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().