Offer personalized banking services related to data security
Banks and fintechs are diving deep into the digital realm and tapping into the treasure chest of data to create better products and services for their customers. Today, modern financial institutions can do all sorts of things, including having personalized banners to reach customers with specific interests and offering personalized solutions at the right time.
But how banks and fintech in Saudi Arabia can meet the challenges of personalization while carefully managing customer data.
It’s about linking data security with personalized and enjoyable banking experiences!
There is no magic bullet to fix all data privacy issues. But, for financial institutions, an information-driven customer engagement platform that is compliant with privacy regulations is definitely the need of the hour.
The paradigm shift in generic communication has reduced processing and credit ratings, or CPAs, by more than 200%. Indeed, the banking and finance industries today use AI-based optical character recognition, or OCR, to verify uploaded documents (KYC) and process forms. This ushered in an era of convenience for banks and customers. Other digital initiatives such as AI-powered chatbots are being used to improve customer experience and reach underserved customer segments at optimal costs, in minimum time.
As digitization pushes banking and finance organizations to harness data for greater customer convenience, they also have a responsibility to protect customers’ personally identifiable information, or PII, from breaches and security threats.
Given the recent spate of data breach incidents, it’s an understatement to say the industry needs to be alert to emerging threats. This includes mobility security threats, large-scale anti-fraud circumvention, the prevalence of fraud as a service, and frequent ATM hacks. The mobile landscape is particularly threatened by threats such as mobile malware, third-party apps, unsecured Wi-Fi and vulnerable user behavior.
New regulations in Saudi Arabia
Saudi Arabia recently released the Personal Data Protection Act, or PDPL, which stipulates data protection rules that all businesses must follow across the Kingdom. The PDPL grants individuals rights with respect to their personal data, including the rights of access, rectification and destruction/deletion. In addition, it grants individuals the right to be informed, which obliges processors to inform individuals of the legal or practical justification and the purpose for collecting their personal data.
Cost of a Data Breach A 2020 study by IBM Security showed that a single data breach in the financial industry can cost a business an average of $5.85 million. In 2021 alone, losses from data breaches by fintech companies were estimated at $5.72 million. It is seen that the average breach goes unrecognized for more than nine months and the resulting fallout of adjusted bank records and stolen records require exorbitant recovery costs.
IBM’s report further pointed out that data breaches across the world increased by 10% between 2020 and 2021, and related costs rose from $3.86 million to $4.24 million. dollars on average.
But the good news is that groups operating with a fully deployed and mature technology stack can identify and successfully contain a data breach 27% more effectively than those positioned in the early stages of transformation. The cursor now points to the fact that cybersecurity must excel in preventing attacks in real time, rather than in repairing damage.
Now is the time to shift into “prevention is better than cure” mode. And that’s precisely why governments around the world are taking proactive action and imposing regulations like the EU’s General Data Protection Regulation, the world’s toughest privacy and privacy law. security. All organizations that target or collect data relating to individuals in the EU must fulfill these obligations. Similarly, governments in the Middle East have begun to enforce strict regulations on the handling and management of customer PII by financial institutions in the region.
Customer Engagement Platform
It’s a daunting task for banks and fintech companies to account for all digital laws, but not impossible. Innovative and advanced customer engagement platforms that comply with data security and privacy regulations can help banks keep their customers happy. At the same time, they can adhere to national data laws and regulations and comply with global and regional data privacy and security standards.
Accelerated by the pandemic, banks and fintechs in the Middle East have begun to deepen their relationships with their customers while ensuring the security of customer PII.
Customer delight and personalized service in banking enable meaningful engagement with customers and strong data security and privacy. Banks are adopting AI-powered customer engagement platforms to solve these problems along a customer journey that ultimately drives profitable growth.
• Raviteja Dodda is the CEO and co-founder of MoEngage.
Disclaimer: The opinions expressed by the authors in this section are their own and do not necessarily reflect the views of Arab News