How to Promote Data Sharing of Financial Service Providers Based on Federated Learning Technology

Data sharing between financial service providers (FSPs) can promote the reduction of financial risks, but the reality is that the FSPs may be unwilling to share data with each other due to data security problems. The emergence of federated data technology provides a convenient way to address this issue. In this article, the author proposes using a federated data sharing model for FSPs and two dynamic evolutionary games for evaluating influencing factors. Cooperation results when both FSPs reach a certain level of mutual payoff. The reward and punishment mechanisms are important means by which FSPs actively implement real data sharing. The interaction between the FSP and the federated technology service provider (FTSP) demonstrates the practicality of this new technology. The results show that the data sharing improved the data trust and supported regulatory mechanisms.