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A new report by Accenture has shown that one-third of financial services

Data Privacy Fears Hold Back Financial Services Marketing

Apr 2020

A new report by Accenture has shown that one-third of financial services providers in Europe and North America have no clear plans in place when it comes to protecting the privacy of their customer data.[1]

This failure to act in the area of data privacy is said to be holding back financial services providers from marketing their products effectively, through the provision of data-centric value-added services. 

Our opinion is that, is that, if these organisations were more confident in their understanding of  the General Data Protection Regulation (GDPR) in the UK and Europe (and also the California Consumer Privacy Act (CCPA) in the case of American-based companies), and had the right protection in place, they could become more aligned with their customers.   This would be through the creation of tailor-made products to suit either private or corporate clients that deliver on those clients’ financial needs.

The study ‘Privacy in Financial Services: Structure and Sustainability’[2], surveyed 100 privacy risk executives in both North America and Europe, with participants working across the banking, insurance and capital markets.  70% of these interviewees saw privacy as their organisation’s biggest area of risk concern, despite 72% having their customers’ consent to contact them with news and offers of personalised products and services.

Accenture highlighted how these organisations would rather lose the marketing benefits of the data they held, in terms of being able to tailor cover to individual customers, than risk fines for using it incorrectly, should customers’ data protection rights be questioned.

Accenture’s Strategy and Consulting Group Managing Director, Ben Shorten, comments that these financial services companies need to look beyond compliance risks and consider a “broader opportunity to elevate the customer experience around privacy.”

Despite the usefulness of data in financial services marketing, having the right insurances, including cyber protection, in place, which can assist should systems be compromised, is hugely important. Some of the world’s biggest companies have been hacked and cyber insurance support has an important role to fulfil.  Financial services businesses are generally thought to be bigger targets than some other businesses, because of the financial information they hold online.

If you are a financial services business requiring assistance with your cyber protection, it is almost certainly time to talk to an expert in this area of insurance, to ensure that cover fits your needs and has sufficient policy limits for your individual business, rather than being too generic.  To find a broker to assist you, please use our ‘Find a Local Broker’ tool.