The financial services industry doesn’t look anything like it did 20 years ago. The number of new entrants has skyrocketed, challenging established notions of how, why and when customers can engage with banks and other organisations. But some things never change – and compliance is one of them.
At the Privacy Compliance Hub, we know fintechs are under constant pressure to rapidly deploy new applications and services. But these businesses typically hold and process large amounts of customer data, and innovation cannot come at the expense of privacy compliance. We work with startups such as Globacap, Wayhome, tomato pay, Credit Kudos and Onfido and have seen how making privacy a priority can pay dividends.
With heightened regulatory and industry scrutiny of data security practices, and more customer pressure when it comes to preserving privacy, those that take compliance seriously will stand head and shoulders above the rest. Here are some of the challenges facing fintech firms, and how to address them.
Building trust by protecting customer data
Customers care about privacy, particularly when it comes to their financial information, and are taking action to protect it. A third of UK organisations lose customers after a data breach and four in 10 customers say they’ll never return to a business after a security issue. Fintechs can boost the confidence of customers by demonstrating good privacy practices. That includes considering privacy implications at every stage of developing a new product or service, being upfront about how they’re processing customer data, and promoting the extra steps they’re taking to keep personal information safe. It’s what our co-founder Nigel likes to call “putting the PR into GDPR”.