Financial institutions (FIs) collect and process a large amount of personal data from their customers, such as name, address, account number, transaction history, credit score, etc. Customers may have different preferences regarding how their data is used, shared, or protected by the FIs. For example, some customers may want to receive marketing offers from the FIs or their affiliates, while others may opt out of such communications. Some customers may prefer to access their accounts online, while others may use mobile apps, phone calls, or physical branches. Some customers may want to enable biometric authentication, while others may rely on passwords or PINs.
Managing these diverse and dynamic user preferences is a challenge for FIs, as they need to ensure that they respect and honor the choices of their customers across all the channels and platforms they use. This requires FIs to have a robust and integrated system that can capture, store, update, and apply user preferences consistently and accurately. Failing to do so may result in customer dissatisfaction, loss of trust, regulatory fines, or legal disputes.12 References: 1: The Top Three Digital Challenges Faced By Financial Institutions And How To Overcome Them3, paragraph 42: IAPP CIPP/US Certified Information Privacy Professional Study Guide, page 127.