With less than a week to go until GDPR enforcement, only 40 per cent of companies expect to achieve compliance with the regulation after the 25th May deadline. This number is alarming, as non-compliance fines start at €20 million or 4 per cent of annual global turnover.
Fines under GDPR pose a serious threat, but the real danger to banks will be the potentially crippling effect of the right to be forgotten, according to relationship marketing experts Optimove. To persuade consumers to continue sharing their information, banks need to prove to their customers that they are benefitting from handing over their data.
PiniYakuel, CEO of Optimove, comments: “Customers are becoming increasingly aware of the value of their personal data, and frustrated if they feel it is being taken for granted and not adding value to the service they receive. Data needs to be used to provide unique insight on what works for each person, in order to empower an emotionally intelligent conversation with the customer. Banks can no longer rely on standardised, identical customer engagement.
“Personalised conversations with customers are not new to the banking experience. In the early nineties, branch managers at local banks kept up personal relations with all their customers, taking the time out to understand their credit history and banking preferences. This would not only help them ensure customer loyalty, but also enable them to provide a seamless experience for their customers. As this relationship travelled through time, it has become increasingly virtual and intangible – aided by technology and artificial intelligence
Pini continues: “But as GDPR requires financial service companies to obtain positive, informed consent before holding customer data, customers need to be convinced that their information is being used in their best interest, or risk losing it altogether. Taking this approach, banks that use data well will be able to avoid becoming inundated by requests for erasure, and can continue to provide extra value to their consumers.
“If banks are to keep hold of the data they have, they will need to make the most of it – finding out what appeals to each customer, and connecting with them on a human level to provide real value. Those successful at creating a meaningful relationship with their customers will benefit from greater loyalty and engagement going forward.”