Data Privacy in the Financial Services Industry

| Point of View

How high-profile data breaches have impacted the privacy landscape

Divulging personally identifiable information during a business transaction has become commonplace for most individuals, resulting in a deluge of personally identifiable information that banks, capital markets firms, and insurance companies must store as part of their day to day business. Due to the rising threat of data breaches, identity theft, and associated fraud across all industries, companies are increasingly focusing on enhancing data privacy programs. While the problem of data breaches crosses all industries, the financial services industry is a primary target of fraudsters due to the inherent value of the data.

This paper discusses the importance of data privacy from the perspective of financial services institutions with an emphasis on the challenges firms face in day-to- day business operations. It also analyzes the role that government organizations across the globe are playing in formulating privacy laws and overseeing compliance. Finally, we look at the steps financial services firms need to take to better protect against data breach incidents through the design of proactive data privacy programs.