Banks have taken prime place in the data hall of shame at the Information Commissioner’s Office (ICO) after being the most complained about sector over data protection issues.
A Freedom of Information (FOI) request submitted by security supplier Axaway has revealed the number of complaints per sector with lenders the most complained about in 2011 and 2012.
While lenders caused the most problems with 2,356 complaints in the two years, local government organisations were second with 2,080.
The FOI request also revealed that the ICO has received an average of eight complaints per day this year so far, with 1,002 complaints that raised concerns over the disclosure of personal data or breaches.
The move coincides with a new report which claims fewer than 1 in 10 believe banks effectively mine their customer data, resulting in a customer needs not being matched with product offerings.
The survey, conducted by KPMG, also reveals that just 5% of banks are planning to invest in data analytics between now and 2017.
KPMG director customer and channel advisory team Neel Arya said: “By failing to capitalise on the customer data at their disposal, high street banks are missing opportunities to enhance their customers’ experience, create products and services that are relevant to customer needs and build long-term loyalty.
The results also show that banks acknowledge three key challenges when it comes to using data gleaned from external data providers and sites such as Facebook, Twitter or blogs:
Firstly, how to link external data to individual customers. Secondly, concerns over how tapping into customer data will affect their reputations, and finally, the need to better understand the most valuable types of external data available.
“It’s encouraging that many within the industry accept that more should be done to leverage the potential of the information at their disposal, but worrying that so few seem prepared to invest in this area,” added Arya.
“If the focus remains on banks’ centrally collected data, customer analytics will remain incomplete. The simple fact is they need to harness the data they already own, but not at the expense of ignoring new material.”
