IBM RegTech Blog: It’s Time to Embrace Customer Data Privacy and Security

Source: https://ibm.co/2wH3n5V IBM RegTech

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It’s time to embrace customer data privacy and security May 23, 2019 | Written by: Lee Kroll, H. Leigh Feldman, and Alan Schienberg Categorized: Banking | FinTech | Security Share this post:

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Customer data is the modern enterprise’s most valuable asset. For years, enterprises have collected a

second thought. Now, new technology, business and regulatory challenges are forcing them to rethink that data.

Customer data drives innovations like artificial intelligence and blockchain solutions. For most compan share of existing markets, and it’s the key to unlocking new ones.

But for companies that don’t master privacy and security, data can be toxic. If they don’t protect their

potential financial and legal repercussions. Enterprises must learn how to use data responsibly and tra comply with stricter regulations, but also to build relationships with their customers.

ed in a report from

ts worry

ce and ba

criminatio data.

A shifting regulatory landscape

These potential data abuses are drawing interest from policymakers. Stricter regulations are changing Data protection is more than a perk; it’s a strategic imperative.

For example, automated profiling and decision-making is a danger that the European Union’s General

to protect its data subjects from. Organizations holding such data face penalties that could reach 4 pe

global revenues, whichever is higher, if they do not meet its strict requirements. Some companies hav million euro fines for violating the GDPR. There’s a mounting movement for similar data protection across the globe, including in the U.S. The

will require companies who collect data from California residents to be transparent about what they w who gets to see it. More than 10 other U.S. states are also mulling strict privacy legislation.

At the federal level, congressional leaders have introduced several bills targeting the privacy of data a Privacy Bill of Rights Act from U.S. Sen. Ed Markey, a Democrat from Massachusetts.

Even in the absence of cohesive federal legislation, individual agencies are nonetheless toeing a harde Trade Commission investigates potential privacy violations and issues penalties where necessary. We

and think that regulations at a state and federal level in the U.S. may tighten over the next three to five attention to consumer concerns about data privacy.

Embracing data privacy

These challenges need not be negative for enterprises. If handled correctly, they present significant o

A proactive approach to privacy can put you in front of compliance challenges and become a useful to

company without a coherent privacy framework might face unexpected data sovereignty challenges a

customer data in other countries. By understanding these issues and preparing legal and technical str

you can better optimize and maximize data use within your established risk tolerance and get ahead o

Similarly, a company might develop a product that uses sensitive data. These products and services ar

and even p

The time to examine your approach to data privacy and security is now. The value of a comp clear as data becomes an increasingly critical asset.

rehensive

Learn more about IBM’s data security services and the privacy and data protection practice of Promon company.

Lee Kroll Partner, Global Business Services, Financial Services

H. Leigh Feldman

Managing Director, Privacy & Data Protection, Promontory Financial Group, an IBM

Alan Schienberg Senior Vice President, Promontory Financial Group, an IBM Company

ving role o