The Accenture report – “Privacy in Financial Services: Stature and Sustainability in the Information Age” – is based on a survey of 100 privacy executives in the banking, insurance and capital markets sectors in North America and Europe.
It focuses on how companies should rethink how they use, store and protect customer data as recently implemented regulations, including the General Data Protection Regulation (GDPR) and the California Consumer Privacy Act (CCPA), give consumers explicit privacy rights.
Key findings of Accenture’s report
According to the report, seven in 10 respondents see privacy as a key risk for their firms, increasing the need for a clear privacy strategy.
Noting that nearly three-quarters of respondents’ companies use consent to tailor customer-facing products and services, the report suggests that financial services firms incorporate privacy into the overall customer journey by giving customers more control over their data and deleting personal information upon request.
When asked which privacy risks will require the most effort to remediate over the next year, respondents most often cited privacy risk monitoring, the accuracy and maintenance of records processing/ information asset registers, and records management and data retention/deletion.
These risks are heightened by the “right to erasure” requests under GDPR and CCPA, which empower consumers to ask companies to delete their personal data upon request, making proper records management critical.
The report notes that while three-fourths of respondents plan to increase their privacy investments over the next year, companies without a clear privacy strategy could fail to reap the expected value from these investments – while those that create clear strategies and infuse a culture of privacy awareness across their organizations will differentiate themselves and build consumer trust.
In addition, as firms increasingly focus on demonstrating ethical and responsible use of data in their artificial intelligence and machine-learning algorithms, a new class of privacy risks related to data ethics could emerge.
This presents another opportunity for firms to build consumer trust by providing greater transparency around automated decisioning models and introducing ethical guide rails for the use of personal data.