On the occasion of the European Day of Data Protection, which is celebrated on January 28, the importance of the safety and privacy of data as crucial elements for a positive customer experience is highlighted. The bank industry, in particular, has shown a great sensitivity towards this protection, especially given the increase in cybercrime.
According to the THREAT LANDSCAPE REPORT REPORT OF S21SEC, in 2024 an increase in the activity of bank Trojans has been observed, whose objective is to steal credentials and financial data. Financial services, historically considered trustworthy thanks to the scrutiny of government entities, are one of the most regulated sectors worldwide. However, the growing cyber threat forces these organizations to actively protect their clients’ data to safeguard their reputation, assets and consumer confidence.
Data security: customer loyalty
Customer satisfaction is the result of a series of experiences, where good must overcome bad. A security gap can be a devastating experience, affecting the reputation and confidence of the client, in addition to carrying millionaire fines. Even if consumers trust their bank, the increase in digital threats generates a valid fear to be the object of fraud.
In the digital age, data security is essential for the survival and success of financial institutions
Financial institutions must balance the need for good client experience with the growing importance of data protection. The key lies in building resilient experiences and satisfied with regulations. This implies investing in preventive security measures that allow to detect, investigate and respond to incidents, as well as collaborate with suppliers committed to security and compliance. All this, according to regulatory frameworks such as the General Data Protection Regulations (RGPD) and the NIS2 cybersecurity directive.
Fundamental role of technology
Technology plays a crucial role in data protection and must be carefully implemented and supervised to guarantee compatibility with existing regulations. Twilio stands out four pillars of good practices in the financial sector:
- Simple incorporation: Facilitate the access of new customers to their accounts quickly and safely, validating their identity and complying with the regulations.
- Session late interruptions: Balancing Safety simplicity, implementing robust authentication and password recovery methods.
- Safe transactions: Protect customer information at each stage of the transaction process, from product selection to payment processing.
- Simplified Accounts Management: Implement control mechanisms to ensure that any change in the account is intentional and authorized by the user.
Data protection should not be seen as an expense, but as an investment. A Qualtrics study predicts that banks can increase their growth rate by 27.5% by improving their customer experience scores by 10%. On the European day of data protection, prioritizing security and compliance not only protects customers, but also strengthens the reputation of the institution and feels the foundations for sustainable growth.
