One year on, wealth managers still struggle with their GDPR compliance journey?- a breakfast discussion
Adam D. Wisniewski
Partner at ADW Consulting and AI4Leaders | Technology Strategy & Business Alignment | AI | DLT | Rational Visionary
In May 2018, GDPR came into effect in the EU, with Switzerland expected to follow suit in 2020 with the revised Federal Act on Data Protection (FADP). At first, the response of the banking industry was reserved. The main focus of the regulators was on data driven businesses and those with especially sensitive data, such as social networks and the health industry. Meanwhile, however, the attention of the regulators, as well as the awareness of the clients increased substantially, exposing banks to both financial and reputational risks.
As a reaction to client requests, Avaloq issued a GDPR module providing its clients with a robust technical framework. Working together with Avaloq Consulting, Orbium seized the opportunity and invited leading Swiss private banks and wealth managers to a breakfast roundtable in Zurich. During the session, we discussed their experiences with this seismic regulation and the predicted impact of the Swiss version FADP.
Let me share some of the key insights:
- For many banks and wealth managers, the process of implementing the GDPR compliance strategy is still in its early stages. Many firms believing that there is a broad definition of “readiness”
- Attendees showed interest in special cases with retention periods shorter than the standard 10 years in Switzerland – and we discussed a few of them
- The consensus was that GDPR is not only an IT issue and therefore Legal/Compliance and Business functions should be involved from the start – However, in many instances this has not been the case
- Dependencies on 3rd party systems should not be underestimated
- Banks are still struggling to find a balance between their client’s demand for data privacy and the desire for personalised services.
In my latest piece, I take a look at what wealth managers still need to consider when dealing with GDPR/FADP and the activities required when working with the Avaloq banking suite:
Partner bei FREYLAW | Arbeitsrecht und vertragliche Streitigkeiten
5 年Hot topic...not only with wealth managers
Partner at ADW Consulting and AI4Leaders | Technology Strategy & Business Alignment | AI | DLT | Rational Visionary
5 年Are you prepared ? And are you strategic about it ? After all, it's about your second most important asset, right after your client base - the data you have!