Data privacy remains a hot topic due to ongoing failures in security and concerns about how companies are using the personal data they collect about their customers or users.
Due to the vast amounts of sensitive data they process on a regular basis, it is understandable that financial service industries are among the most regulated in the world.
So, it’s concerning that a report by Accenture in 2020 highlighted that one-third of financial services organisations lack a clear plan or the resources to address privacy risks related to customer data.
New technology and data security
Customers using banking services trust that their provider has proper security and processes in place. They’re putting confidence in the fact that their institution won’t abuse their information for other purposes without their explicit consent.
With data-driven innovations such as open banking transforming the customer experience, financial institutions are continuously trying to find the balance between maximizing the customer experience and ensuring adequate security for their customers’ data.
Cross-channel marketing is also required to serve your customers with personalised stories, tailored to their interests, and maintaining this storyline across all the different media formats. You will have an increasingly complex network of social media, third party websites, personalised homepages and traditional physical locations.
The fact is that in today’s financial services marketing world, you need to leverage data in order to keep pace in a highly-competitive landscape. Yet one mistake with sensitive consumer data can have lasting damage on your institution’s reputation and consumer trust, not to mention your brand equity.
Understanding GDPR Requirements
The European Union introduced the General Data Protection Regulations (GDPR) on May 25, 2018. These guidelines outlined the responsibilities of institutions doing business with EU citizens to keep consumer data safe and accountable.
Key elements include:
- Requirements for consent provided by consumers requiring a positive action
- Making certain elements of data collected on individuals anonymous to prevent identification
- Notifying of any breaches of consumer information to the regulator
- Transferring data across different borders inside and outside for the EU.
- Requirements around appointing someone responsible for enforcing GDPR regulations
It’s important to understand the GDPR and which key elements can have an impact upon your financial services marketing activity.
It’s also important to understand that GDPR is evolving all the time. Many things have changed since it was first launched. Marketers in banks and financial institutions need to remain diligent to track these changes and how they affect their campaigns in different regions and across borders.
And let us not forget PECR which sits alongside GDPR to add further confusion!
Any breach of data regulation can have dire consequences.
Working with Simon Hinks at PMA, FSMarTech have created a workshop to inform banks and financial institutions of the key elements in marketing for financial services businesses under PECR and GDPR. We would invite you to join a forthcoming session. For further information visit the workshop page.