by Roxanne Voidonicolas, Content Marketing Manager, Sensibill
What does it mean to have an ethical data culture? And is it the same thing as having a GDPR-compliant strategy?
It’s been a year since GDPR was introduced, and we have plenty of examples of companies that are struggling with compliance. In recent news alone, we’ve had Facebook’s questionable transcription of audio recordings, British Airways’ cyber-incident, and Marriott’s data breach that exposed 339 million customers globally. And while the hefty fines doled out by the UK Information Commissioner’s Office are helping drive some change, it still feels like regulators are playing catch-up rather than setting a standard.
For organisations that handle sensitive data, this presents an interesting opportunity to establish trust as a key point of brand differentiation. For financial institutions in particular, a proactive ethical data culture could restore a lot of confidence in the eyes of consumers who are still reeling from the Financial Crisis of 2008 (and the unfortunate slew of scandals since).
Historically, banks were viewed as the custodians of their customers’ data, which was seen as information to protect, not an asset to commoditise. Of course, that’s all changed with the rise of fintech, AI, and regulatory changes such as open banking. Banking technologies now harvest and crunch all sorts of customer data – financial, social, geographical – to give personalised financial advice, make product recommendations, approve loans, and much more. The requirement to share data with regulated third-party providers at the request of the customer poses an additional risk for financial institutions’ reputation should any breaches arise.
In the absence of a centralised “code of data ethics”, incumbents have an opportunity to lead the charge in ethical data management and secure their role as trusted agents in customers’ lives.
Which brings me back to the original question: what does it mean to have an ethical data culture? And does your organisation have one?
We made you this flowchart so you can find out for yourself. Download it here.