Financial institutions face numerous hurdles in their efforts to ensure data privacy for their customers. These challenges stem from the vast amount of sensitive data they handle, the evolving regulatory landscape, and the ever-present threat of cyberattacks.
Concerns about data privacy are of the utmost importance for lending and credit underwriting businesses in the financial sectors. A compromise of the sensitive data that financial institutions manage for their customers in the course of lending and credit underwriting has serious repercussions.
Data privacy is becoming primary focus due to increased awareness from regulatory bodies, general awareness and cyber-attacks on India institutions. The issues are further aggravated in case public clouds are not used in a secure manner.
There is growing awareness on the Importance of Data Privacy, Data privacy relates to the control of customer data accessibility by organizations; data that stakeholders and clients provide to businesses, with whom they have to coordinate. For business purposes financial institutions need to collect specific details of people for lending purposes.
However, they need to ensure that the data is protected and not shared with any 3rd party without user consent. As you can understand, maintenance of privity of such sensitive information is paramount in this context. Financial Institutions, Security and Consumers — a Close Nexus of Trust
Customers use their bank cards to make purchases with the knowledge that their financial institution has adequate security measures in place to guard against the theft of their data. Also, they provide their personal and financial details for lending or insurance services.
Data security issues occur when staff members, security personnel, and other individuals responsible for preserving sensitive information don't implement sufficient security practices or follow them. They use weak credentials or synch their credentials with their personal emails. This flaw gives hackers a simple approach to gaining access to the internal systems of their firm.
When institutions don't have enough security measures in place to thwart hackers trying to steal data, it not only affects that organization but also the partners and customers whose data is stolen. Making sure a company's data security measures are sufficient is a continuous and challenging endeavor and requires dedication starting from top management, security team and last mile employee working in a remotest branch office.
Going forward, Institutions must put in place a data protection framework that offers instructions on how to protect data.
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