Establishing a global financial data sharing standard, free to everyone to use, can empower and protect consumers, while also supporting efforts to deliver new products and services that put people in more direct control of their finances.
While proposed amendments to narrow the scope of the CCPA might tempt financial services organizations to put CCPA compliance on the backburner, that instinct might prove to be flawed for quite a few reasons.
Financial market regulators from outside the EU are now seeking GDPR exemptions for the purpose of "public interest", for example cracking down on securities fraud, including the SEC in the U.S. as well as regulators in Japan and Hong Kong.
The ability of financial institutions to recover data breach losses from non-contacting parties depends on various legal statutes and industry regulations.
The only guarantee today is that nefarious parties will continue to find new ways to infiltrate networks at financial institutions. Therefore, we must implement best practices to protect against cybersecurity incidents, as well as to resolve all possible issues that can arise should a cyberattack occur.
With massive collection and use of customer data and now "alternative data", FinTech companies must prove their commitment to data privacy & cybersecurity.
A recent audit of websites by the well-known Online Trust Alliance has revealed something that many consumers have long suspected. Financial institutions are the least trusted when it comes to cybersecurity. Although the results are no doubt coloured by the inherent fear that many consumers have when it comes to the security of their money, it should still be a worry for banks which have long struggled with issues around online trust.
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