Data protection in finance is of the highest importance

Many people think that banks and financial services were the first in the line for financial scrutiny after GDPR came into force – and they’re not wrong. Due to the nature of the sector, financial matters require processing of vast amounts of personal information that is usually very sensitive. The fines for non-compliance are eye-watering and we must take every care to ensure the confidentiality of our clients’ data.

What steps must be taken to ensure customers’ information is protected?

There are a number of measures to put in place to safeguard our clients’ data. Here’s the best practice we take and the same practice that you should be taking too:

 

Accountability

Make sure that the methods you use to collect and administer payments are fully accountable, easy to use and read and that your accounting is transparent and secure. Ensure controls are in place that spell out how customers can access and manage their data.

 

Have clear data breach policies

Ensure that you seek professional advice to lead by example. Compiling regular and thorough risk assessments on stored data will ensure that you comply with the latest regulations. There are a number of examples to account for what happens when lost or stolen data is used for identity fraud and you do not want to be on the wrong side of the table when it comes to your customers (or the law for that matter!).

 

Financial service providers…

…are often using automatic profiling in determining their potential customers’ credit viability. You must ensure you know the rules around automatic profiling and that you comply with the legislation to the T.

 

Training and awareness

It’s crucial to ensure that everybody is on the same page in terms of data handling. That’s why staff training and awareness should be made a priority – make sure you schedule enough time for meaningful training for all of the departments you work with.

 

The importance of internal auditing and compliance monitoring

It’s also very important to perform these on a regular basis, regardless of the size of your business. Even more importantly, the financial sector has to ensure full transparency and accountability and these methods are crucial in achieving it.

 

At DFC, we offer a totally transparent revenue management service with clear pricing and no hidden extras. 

Our mission is to make our clients business easier and help improve your relationships with your customers so that they stay longer. You can leave us to collect your Direct Debits, while you concentrate on running – and growing – your business.