New regulations should help finance companies improve their marketing as they get to know a customer better
By Kao Shih-ching / Journalist
The Financial Supervisory Commission (FSC) on Thursday released guidelines on data sharing by financial institutions, allowing companies to exchange customer data such as transaction records, account information or protocol addresses Internet (IP) for the purpose of improving marketing efficiency and accuracy, but sharing would need customer consent, FSC Vice President Jean Chiu (邱淑貞) said at a conference press in New Taipei City.
Customers could agree to have their data shared with another financial institution as they wouldn’t need to fill out new forms and the ‘know your customer’ (KYC) exams could be completed faster, Chiu said, citing the example of a customer of a bank who wishes to open an account in the securities company affiliated with the bank.
“If the data is shared, the application process would be more convenient,” she said.
The commission allows financial institutions to share clients’ IP addresses, as such information can help them spot possible fraud, but institutions should still perform their own KYC review, even if they have obtained KYC data from another. business for the client, she said.
Financial institutions could also share a customer’s negative information, such as their default records, if the customer consents, but the company receiving the negative information needs to verify that the data is correct, the department general manager said. FSC planning, Brenda Hu (胡則華).
The new regulations should help financial institutions improve their marketing, as they would have better knowledge of a customer’s preferences, behaviors and risks, Chiu said.
The guidelines would also allow companies to share data with stock and futures brokers, as the latter rarely share data with other companies, except for information about possible money laundering, the company said. commission.
The commission would allow data sharing between a financial conglomerate and its business units, between an independent financial company and its subsidiaries, and between an independent company and another independent company, Chiu said.
In the first two examples, companies could set up a common database to store customer information and perform risk assessments, while in the third example, companies need to determine how long they would exchange data between they and how they would handle that data when the partnership comes to an end, the commission said.
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