Financial firms are failing to fully protect confidential customer information, according to a study, which claims the vast majority use real data when testing new products.
Data integration firm Informatica commissioned the Ponemon Institute to quiz over 430 senior data professionals in the financial services industry across the UK.
When it comes to data management, over 70 per cent of respondents said the protection of real customer data in the development and testing stage of new applications and services – for example online banking tools – was a “primary concern”.
However, almost three quarters of respondents (74 per cent) admitted to a lack of confidence or uncertainty in their organisation’s capabilities when it comes to protecting customer information.
Nearly 40 per cent admitted their organisation had experienced a data loss or theft. And 90 per cent said they use real customer data in the testing stage of new products and services.
Informatica senior vice president for EMEA John Poulter said: “There appears to be an overwhelming lack of confidence from data professionals that their organisations have the right measures in place to ensure that customer data remains protected and the business remains out of the firing line from industry regulators.
“To avoid a hefty fine from bodies such as the FSA, it’s essential that organisations clearly define their data management strategy, implement best practice and are observant when it comes to making sure that the same level of data management quality is delivered across the business at all times, whether as a part of live customer services, or in the development stages of new ones,” said Poulter.
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