The latest session of the IIF’s DataTalk focused on decentralized finance, exploring the programmability of financial contracts, security and transparency, interoperability with the existing financial system, and other key issues most pertinent to Chief Data Officers. This note provides a summary of the key themes that emerged, noting that the conversation was conducted under the Chatham House Rule, and comments are unattributed. For context, DataTalk is our community of practice, held in partnership with knowledge partner the Oliver Wyman Forum, to bring together data officers and experts for interactive sessions on key data topics in financial services.

Decentralized finance (DeFi) is the collective term for applications that theoretically provide financial services without centralized intermediaries by leveraging automated protocols and blockchain technology such as smart contracts. The landscape is quite complex, featuring nascent and fast-evolving technologies, abstract and novel concepts and paradigms, and limited regulation. While the space is developing rapidly, and has enormous potential, myriad risks and considerations must be addressed for the market to scale.

The DataTalk series continues later this month on May 23rd at 9:00am New York time, where we will discuss Data and ESG.

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