Dealing with data is tricky, regardless of its use. But when banks' data pool consists of SSNs, credit scores, addresses, and more; when that data exists for millions of consumers; and that data is being managed by one of the most highly regulated enterprises on the planet? Compliance gets complicated.
The world’s largest banks' approach to information management and compliance has seen a serious shift in light of recent increases in regulatory demands. Principles that were once applied solely for small-scale legal projects must now span the entire enterprise. Recently, ZL witnessed one of the world’s largest banks reexamine their information management strategy. Their decision to pursue unified information governance—through the use of ZL Unified Archive—reflects a broader shift from traditional, siloed systems in the financial services industry as a whole.
The Changing Regulatory Landscape of Banks
Financial services are no strangers to regulation. From SEC 17a-4 to FINRA, these institutions have dealt with data regulations and compliance issues for decades. Yet even ostensibly simple requirements took immense time and effort to implement.
Take SEC 17a-4, for instance. To improve review and audit capabilities and prevent fraud, it requires certain communications be stored for 5-7 years on WORM storage—a simple storage requirement, yet it took millions of dollars in fines for the industry to take notice and become satisfactorily compliant.
When GDPR comes into full effect this May, the global privacy landscape will be irrevocably changed, and data management will be more complicated than ever before. Although regulatory bodies conflict on their reported enforcement plans (the ICO says fines will be a last resort, while Irish regulators say they're revving up), banks simply handle too much data to sit idly by—especially with multi-million euro fines on the line.
The Data Dilemma of Banks
With GDPR from Europe and increased attention from Congress, the way we handle data is going to change. While companies need more data than ever before to provide increasingly personalized services to customers and gain valuable business insights, regulation is increasing. To comply, they must shed excess data and either limit or closely monitor and document its use. Therein lies the dilemma: what stays, and what goes?
While the answer will be different for every institution, true compliance is only possible alongside full insight and control. To see out how we help financial institutions comply with confidence, talk with one of our experts today.