CHALLENGE

Orange, a global telecommunications company, and Zurich, one of the leading insurance companies, have complementary data, Zurich, has customer attributes data (age, body mass index, medical history) and Orange has complementary high-quality data (i.e. browsing history or geolocation…). Combining their data for model training would drastically improve the accuracy of the models and would have a huge operational and financial benefit for both parties. However, companies are not willing to share proprietary personal data as it would be unethical and against regulation.

Indra, a global consulting company, wanted to explore the possibility improving the model's accuracy without sharing data.

telefonica challenge

Results

Through Sherpa.ai's privacy-preserving platform, the bank’s predictive algorithms were trained with a combination of Telefonica's and the banks data (demographic, socioeconomic, product use and financial) without sharing it. Sherpa.ai Federated Learning platform allows to train AI models without sharing any data and therefore ensuring compliance with regulation, ESG standards as well as data privacy.

The pilot resulted in impressive improvements in the accuracy of the defaulter's prediction algorithm with potential to have a multi-million impact yearly in each bank financial results.

9%

Improvement in the defaulter's predictive algorithm accuracy

100M

Potential yearly financial impact in some of Spain's largests banks

ABOUT:
TELEFÓNICA

Telefónica's strategy is based on two pillars: its mission to “make the world more human by connecting people's lives“ and its Responsible Business Principles, which reflect not only its code of ethics but also its policy of responsibility towards its stakeholders and society in general.

The main lines of our future strategy are based on three pillars:

  • Generate a positive impact on progress, favoring economic and social development based on digitalization.
  • Building a greener future through the development of ecological sustainability initiatives.
  • Leading by example and generating trust in all our activities.
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