Almost two-thirds (65%) of players across the wealth management and private banking market say they are prepared for the EU’s General Data Protection Regulation (GDPR).
This is the key finding of an exclusive poll conducted by Private Banker International (PBI).
GDPR is due to become effective on 25 May 2018. The regulation is set to give consumers more control over their data and will impact every client that is subject to data protection.
Asked how prepared their firm is for GDPR, it is clear that 25% of organisation are making progress, but have some distance to go before being fully prepared for GDPR.
Some 10% of respondents told PBI their company was unprepared for GDPR.
A total of 60% of respondents said the biggest expected consequence of GDPR will be greater transparency for consumers.
While a primary objective of GDPR is to protect clients’ data, only 35% of respondents said they expect the directive to reduce the number of cyber attacks on businesses.
Although respondents expect companies to be more transparent in informing their clients of a cyber attack, this does not mean cyber attacks will necessarily stop.
One consequence of GDPR may lead companies to appoint Data Protection Officers (DPO), and this was covered in the PBI survey.
The poll asked whether firms were likely to appoint a DPO. The results to the question were inconclusive.
More than half of the respondents, 55%, said they were unsure; 15% said they would not hire one; and 20% said they already have a DPO. Only 10% of respondents said they will hire a DPO.
In terms of communicating GDPR to their clients, 60% of respondents said they are taking a proactive approach and have already discussed the regulation with their customers.
However, 25% of clients say they had not discussed GDPR with their clients. Meanwhile, 15% were unsure if they had, or had not.
Half the respondents said they have adapted their IT systems for GDPR, but 45% admitted they have not. Some 5% said they are unaware whether any changes have been implemented to IT systems in readiness for the regulation.
Of those that responded to the PBI survey, 70% work at private banks wealth managers. Other contributors included wealth management solutions providers and advisory companies.
The majority of respondents (70%) polled in PBI’s GDPR survey are based in the UK; with 10% in the EU and 20% in the rest of the world.