Relationship Status with my bank: It’s Complicated

How well do you feel your bank really knows you? GDPR is on the way and could be seen as another hoop to jump through for the banks. But the upside of managing your data in a more systematic, harmonised manner could in fact enable the financial institutions to really get to know their clients and push forward in terms of customer sevice and business developement.

I like to consider myself as a loyal customer to my bank. I have been faithful for the last 35+ years. I have never been tempted to stray. I may have looked at other banks because they look good but that’s allowed, isn’t it? So why after all these years does my bank still not know me?

I can’t help comparing it to a bad relationship where we only stay together for the sake of the children (my current account, direct debits and savings accounts that will get messed up if I switch). Deep down I am upset because they really don’t understand me but I am not going to tell them because they don’t care about me. We communicate when we must, but it’s always reactive. They call me to try and sell me the product of the month without thinking, ‘Is that something that he really wants?’.

…But still we stay together. Through the data, they have – payments going in and out, savings and mortgages over the years, they actually know me better than most. They should be able to build a good picture of me and in turn our relationship would flourish and deliver mutual benefits.

Will my bank ever change?

Well, there is good news on the horizon. GDPR (General Data Protection Regulation) is on the way to set the rules of engagement. The aim of GDPR is ‘to harmonize data privacy laws across Europe, to protect and empower all EU citizens data privacy and to reshape the way organizations across the region approach data privacy’. From 25 May 2018 banks will be forced to organise and understand their clients’ data on a much deeper level than ever before.

If we review the cornerstones of the GDPR directive it is clear to see that what we are building is the foundation for a steady and life long relationship…

  1. Each individual must give explicit consent for their personal data to be collected and used.
  2. These individuals must understand how their information is going to be used.
  3. Companies must clearly stipulate the legal channels available should data-processing not comply with its agreed-upon use.
  4. All personal data must be wiped after a prescribed period of time.
  5. In the event of a serious cyberattack, companies must inform all those affected by the security breach, as well as the Information Commissioner’s Office, within 72 hours.

So, as a bank you have to comply. But don’t just comply, use this accurate data set to get to know me. Realise increased profits through your investment in technology and operational reform.

We all know that regulation is here to stay and here to grow, don’t fight your feelings anymore.

Relationship Status with my bank: Engaged