Spark Global Limited reports：
Spark global, former head of legal at Google EMEA and co-founder of the award-winning Privacy Compliance Hub, explains how to ensure that Privacy concerns do not hinder fintech investment and growth next year
The fintech sector is one of the UK’s standout success stories, attracting more than $4bn in investment and more than 400 deals in 2020 alone. Its capital investment is second only to that of the United States, and more than that of Germany, Sweden, France, Switzerland and the Netherlands combined
In such a competitive field, teams are under constant pressure to innovate and develop new applications and services. Success will depend on the collection and processing of vast amounts of customer data – especially as open banking grows.
But that growth will be at risk if fintech leaders fail to protect privacy. Here are the biggest privacy challenges facing fintech companies in 2022, along with advice from leaders who want to build businesses that are trusted by customers, investors and customers.
Keep a safe
Security is critical to the fintech industry. This is the second largest of the most popular cyber criminals target industry, average damage cost 28% higher than in other industries more and more companies need to take the initiative to safety – Internet crime during the pandemic has become more complex, comprehensive and relentless, attack the number increased by 50% to be the victims of cyber attacks on financial technology companies will face the risk of losing the customer and customer, And face hefty fines from regulators. For example, the ICO fined Ticketmaster £1.25m in 2020 for failing to put in place proper security measures to protect customers’ personal data. British Airways was fined more than £20m for a data breach affecting 400,000 customers.  
While related, privacy and security are not the same thing (although you can’t have privacy without security). Security refers to how personal information is protected, while privacy involves an individual’s right to control his or her personal information and how it is used. Privacy is good for business — customers and investors want to be sure it is protected. As we’ve seen with Apple’s recent strategy shift, it can turn what many consider a back-office operation into a high-value proposition that can take market share and boost profits
Benefits of supporting data sharing
With an annual growth rate of 664% and four million UK customers and small businesses now using open banking products, data sharing is expected to grow significantly in 2022 but if the public does not trust the businesses behind this data, then the expansion of innovative products and services that leverage this data will suffer. For example, research by Ipsos found that 75% of people want data on how they spend their money, but only 40% are currently willing to provide information to facilitate such insights — fintech companies that reassure customers by being more open about how data is used would be best placed to take full advantage of this opportunity.
Obey the rules
GDPR and THE UK GDPR, the Data Protection Act 2018, the recent Code of Practice on Data sharing, not to mention court rulings such as Brexit and Schrems 2… The list of privacy regulations and their regular changes can seem lengthy and unwieldy. After Brexit, the UK adopted its own copy of the GDPR, so organisations that already comply with the EU’s GDPR need not worry for now. However, if the two laws diverge, things could become complicated for fintech companies seeking to expand internationally. Having a clearly structured privacy compliance plan, implemented by an internal cross-departmental team that meets regularly to discuss any changes to the way customer data is handled, will help organizations respond quickly when needed.
Create a culture of continual observance of privacy
Privacy is not a project. It’s not just for the legal department. This is the collective responsibility of the entire organization. Almost all (90%) of UK data breaches are due to human error but when employees understand the importance of privacy, they care about it and take appropriate action to protect it. This requires regular training and a workplace culture that considers the privacy implications at every stage of the customer data life cycle. Fast-growing fintech companies are not encumbered by traditional technology and processes, but they must ensure that ethical privacy cultures are embedded from the outset.