Thousands of finance, insurance and accounting businesses could face fines for mishandling customer data, reveals data company fifty-five. The news emerges as many firms have, as of yet, failed to implement a consent management platform (CMP).
New research conducted by fifty-five of 500 leaders in the industry shows that 43 per cent of finance businesses have not yet implemented CMPs. The platforms play a key role in managing consumer data and preferences in alignment with GDPR.
Furthermore, 48 per cent of those who had not implemented a CMP said their company does not believe it is necessary. Data company fifty-five suggests that these platforms are “critical” for the proper management of consumer data and cookies.
While around half of the companies have not proactively implemented a CMP, 16 per cent of organisations n the sector suggested that their most significant concern was receiving a fine from the Information Commissioners’ Office due to a data breach.
Although the finance sector has a lot of work to do, fifty-five reveals that the sector is ahead of many others. The 46 per cent implementation rate puts the sector third; narrowly behind the IT and retail sectors. IT has the best, with a rate of 51 per cent, and the retail sector has an implementation rate of 49 per cent.
The UK average rate for implementing CMPs is 36 per cent across all sectors. Fifty-five data suggests that, despite some unwillingness to introduce CMPs, a fear of fines from regulators has already pushed the finance sector to act.
‘Important to get GDPR law and data protection right’
Among the companies that have successfully implemented a CMP, 52 per cent suggested the platform affected their ability to win customers. Because the consent management platform can limit customer tracking via cookies, it is clear that not all parties will be happy with the decision.
Richard Wheaton, managing director at fifty-five, commented on the data. He explained: “Respect for the customer’s privacy is at the heart of all financial companies’ principles. And it is imperative that laws are followed to the letter to avoid falling foul of regulators or losing the trust and business of their customers. Finance and accounting businesses are often subject to new rules and regulations, and with the stringent oversight of the FCA, the IFRS and other bodies, they, therefore, take compliance seriously.
“Businesses dragging their heels on implementing a CMP in the finance sector could face double jeopardy: a fine from both the ICO and their regulating body. Therefore, it is even more important to get GDPR law and data protection right.
“Implementing a CMP effectively can minimise the impact on marketing and build more content-driven and profitable relationships, particularly with privacy-focused customers. Working with the right experts is critical for ensuring compliant data gathering without creating barriers to doing business.”