Security News > 2020 > March > How financial services firms are handling data privacy

One-third of financial services organizations lack a clear plan or the resources to address privacy risks related to customer data in the next 12 months, according to a report by Accenture.

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 and the California Consumer Privacy Act, give consumers explicit privacy rights.

"Given the renewed regulatory focus and threat of significant financial fines, it's not surprising that financial services firms are making privacy a top priority," said Ben Shorten, a managing director in Accenture's Strategy & Consulting group.

"But these institutions should think beyond the compliance risks and consider the broader opportunity to elevate the customer experience around privacy. Consumers are willing to share information if there's value in it for them, whether personalized offers, better services or more competitive pricing. Firms that understand how customers perceive and value data privacy have a clear opportunity to differentiate themselves."

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.

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