Privacy-Personalization Paradox: Data Usage by Financial Services Companies
The financial services sector is seeing a big shift towards digitization, leading to an abundance of data that can be used to create personalized customer experiences. By 2025, the number of U.S. digital banking users is expected to reach 216.8 million, according to Statista.
Customers are increasingly seeking tailored experiences across various touchpoints. Over half of U.S. consumers are looking for personalization from their financial services provider, with almost half willing to share more data for a better customer experience.
While data can offer valuable insights into customer interactions, it also introduces security risks if not handled properly. Financial companies need a strong data security solution to use data effectively while safeguarding customer privacy and complying with regulations.
Cybersecurity is a major concern for financial services, as the sector accounted for 28% of cyber attacks in 2023. These attacks can be costly, not just financially, but also in terms of disrupting business operations and damaging reputation.
To address these challenges, organizations must prioritize data security. In response to the escalating threats, regulatory bodies like the U.S. Securities and Exchange Commission (SEC) have tightened rules around data breach disclosures to protect customer information.
Financial institutions can enhance data security by focusing on device-level protection. By implementing tools for collecting and analyzing operational data on employee devices, companies can better understand and manage potential risks. This approach helps in identifying vulnerabilities, monitoring user activities, and ensuring lost or inactive devices are accounted for.
Ultimately, to meet the growing demand for personalized digital services, financial services organizations must invest in robust device management and business intelligence solutions for comprehensive data protection.
