Data Privacy in Banking - Thematic Research

Data Privacy in Banking - Thematic Research

Summary

Data underpins and enriches all aspects of retail banking, whether optimizing channel interactions, personalizing risk assessment, or helping customers make better financial decisions. Data is also critical to the development of transformative new technologies such as artificial intelligence, big data, and the Internet of Things. This report examines the impact the data privacy theme will have across the retail banking industry.

Whoever consumers trust most with their data, they are more likely to permission additional data to and engage with them more frequently overall. Provided necessary technology changes are made, incumbent banks can capitalize on this advantage to deliver more personalized, contextual digital services amid the onslaught of new entrants. Doing so will require forward-thinking IT teams to balance the value of collecting, storing, and processing large volumes of data against the pressing requirements for privacy, security, and compliance. Different customers often feel differently about what data to share, when to share it, and how. The same customers can feel differently depending on what they get in return, the provider, or the sensitivity of data. Engaging in a personalized way will increase the chance of conversion (or consent). Incumbent providers need segmentation models for privacy that recognize that data permissions and consent are a constant trade-off between what customers want to reveal and what they want to get back.

Scope

• Since the introduction of GDPR in 2018, more than 60 jurisdictions around the world have enacted or proposed a privacy or data protection law - including Brazil, Japan, Thailand, and various states around the US. These regulatory initiatives are both a manifestation of consumer concerns in data and a driver of them.
• The more comfortable consumers feel about sharing personal data with companies, the more likely it is that they will use their products and services. Providers can increase comfort levels by segmenting customers by privacy preferences rather than assuming a one-size-fits-all policy.
• Various types of privacy-enhancing technologies - such as encryption, anonymization, and pseudonymization - can enable data mining without violating data privacy, thus not requiring explicit customer consent.

• Understand key technology, macroeconomic, and regulatory trends impacting the data privacy theme.
• Identity priority application areas for privacy-enhancing technologies and the vendors and banks delivering these experiences to end users.
• Access firm-level insight on the leading players within data privacy.

Companies Mentioned

Amazon
Google
Facebook/Meta
Apple
Alphabet
Tinkoff Bank
AIB
Capital One
WeBank
MYbank
Monzo
NatWest/RBS
Danske Bank
DBS
TSB
BBVA
Citibank
mBank
Revolut
Credit Agricole
Barclays
CreditLadder
NovaCredit
Experian
Equifax
TransUnion
Tink
Bud
Plaid
TrueLayer
Cornami
Decentriq
Immuta
Inpher
Statice