Get data privacy right

will have a massive impact. Although Malta should be prepared for the GDPR in view of the existing Data Protection Act (Chapter 440) that has been effective since 2002, the GDPR regime is significantly tougher, carrying fines of up to 4% of global turnover or around €20m for businesses that do not comply, whichever is higher.

Many see GDPR as a compliance issue generating cost and restricting the use of data. However, KPMG privacy practitioners are advising clients to recognise this as an opportunity to seize a competitive advantage and gain consumer trust.

Financial services firms collect and process sensitive personal identifiable information and rely heavily on perceptions of trust. That trust is not always a result of altruism. The banking industry is starting to explore opportunities to leverage personal information.

The IoT and the booming FinTech sector in banking and insurance are the major market disruptors. Such disruptions play to the growing desire of consumers to conduct their business with very little direct human contact and take advantage of the evidence that these emerging robo-relationships and the analytics behind them are becoming more trusted than the human equivalent. This shift is triggering valuable new opportunities for the industry to build stronger relationships with its customers and drive operational efficiencies.

But reality is likely to be more complex for financial services. The sector is facing some particularly challenging questions of trust created by data and analytics, beyond the well-recognised data security and privacy issues. A call for action is required from the financial services organisations to reconsider the way they view and manage trust.

In a global environment defined by constant disruption, business leaders need data and analytics they can trust to make informed decisions on service and product offerings. However, customers are developing a keener sense of the value of personal data, heightened also by GDPR protection towards the data subject. This requires the banking professional to demonstrate unwavering commitment to precision and quali- ty in everything they do.

The demand to ensure that organisations do not blur the line between “cool services that efficiently anticipate your needs” and “creepy and intrusive” is critical. It is advisable to make it easier for consumers to control how their data is collected and be transparent in how it is used.

At KPMG we have developed extensive knowledge in data privacy by advising and assisting clients with the identification of Data Protection gaps and the implementation of a Data Privacy roadmap, together with the development of a sustainable approach towards risk, controls and governance.

Understanding how privacy can work for you is essential. It is about gaining and maintaining your customers’ trust and not just about regulatory compliance. Eric Muscat – Partner, IT Advisory Services Adrian Mizzi –Director, IT Advisory Services