Counting on ethics when it comes to data management
Paula Smith examines how a strong ethical approach can help financial services firms cope with the changing world of data management
The ethical use of data and the extensive use of artificial intelligence (AI) in day-to-day customer interactions have been an area of increased focus for politicians and regulators globally, as well as for news and media channels, over the last couple of years. If financial institutions lose their status as trusted custodians of customer data, they may lose their licence to operate. In mainstream financial services, all forms of institutions are increasingly coming to understand the liabilities associated with data ownership and the use of autonomous technologies.
While the amount of coverage in these areas has increased, the reality for financial institutions is that the ethical use of customer data has been a focus for some time. A good example is the ‘Principles of Reciprocity’, developed as a basis for sharing customer data with third-party providers in order to better undertake credit checks.