Ways To Share Customer Data Safely In Finance Industry

Ways To Share Customer Data Safely In Finance Industry

By CFO Tech Outlook | Monday, December 16, 2019

Data SafetyThere is several risk issues in sharing data among financial institutions, here are some ways mentioned which can solve this problem.

FREMONT, CA: There is a strong case for the sharing of customer exit data among firms, there are also ethical and risk issues that should be addressed. In the wake of the General Data Protection Regulation (GDPR) and the recent increase in data privacy concerns, financial institutions should consider what data they share and how they share it, meeting both compliance requirements and ethical considerations according to internal policy and values.  

Devise a comprehensive, balanced customer treatment strategy

Fintech

Issues concern the data analytics, data sharing, and technology as they pertain to the creation of a customer exit data strategy for financial institutions. There are some ethical and risk issues that should be addressed before a framework are put in place. It is very risky to share an individual’s data, and many people also opt-out under GDPR.

Sometimes the internal cross-jurisdiction sharing also leads to incorrect outcomes, like if a customer’s actions in one place were perfectly legal but not in another. These are the areas a firm should review while considering data sharing. Finally, a financial firm should develop a process identifying steps a customer could take to understand better and challenge a decision. This prevents scenarios in which a customer may mistakenly end up on a grey-list and never be able to get off it.  

Implement a phased roll out

Usually, the primary individuals get affected with all these issues, rather than corporate customers. So it is has become necessary for the financial institutions to focus their energies on corporate customers, mainly as there is a higher cost of investigating, onboarding, and exiting such customers. All the commercial organizations such as banks can evaluate an exit data strategy for individuals after a sharing framework, and appropriate technology solutions are in place.

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