More stringent regulations require Taiwanese banks to better manage customer data
Wan-Li Hsieh, CIO of E.Sun Bank discusses the consequences of Taiwan’s Personal Data Protection Act as well as the bank’s data consolidation strategy. October 15, 2012 | Baron LaudermilkWith Taiwan’s enforcement of the Personal Information Protection Act in May 26, 2010, Taiwanese banks are now required to integrate and upgrade their customer relationship management systems and databases. Although the act is already almost three years old, banks in Taiwan are still struggling to meet regulatory demands, which require them to record and monitor usage of customer data. The Personal Information Protection Act compels banks on the island to record usage of data such as passport numbers, account balances, and other relevant private information. The act not only applies to banks’ marketing schemes, but also obligates banks to monitor and record information collected and the manner it is processed. In a bid to comply with the regulatory demands, E.Sun Bank has developed an in-house customer relationship management (CRM) system, and completed development of its Datamart platform to ensure that the bank can more easily monitor and record how it uses customer information. However, with E-Sun Holdings a financial holding company with an associated bank, its insurance company (the bank uses insurance brokers) and its securities arm are separate legal entities. As a result, data gathered from customers in each of the separate legal entities cannot be used in cross-selling activities unless granted personal permission by the customer. In other words, E.Sun Bank uses its data warehouse to identify if permission has been granted for cross-selling purposes. Wan-Li Hsieh, chief information officer of E. Sun Bank, said that the bank has steadily consolidated its data strategy to comply with requirements of the Personal Information Protection Act. Hsieh pointed out that if Taiwanese banks were not able to verify how data is used, they could face potential fines of up to NT$1 million ($34,203). “E.Sun Bank was able to meet the regulatory demands because it has a systemic database with all the data synchronised at the end of the day. If the... Please login to read the complete article. If you already have an account, you can login now or subscribe/register.
Categories: Data & Analytics, Data Management, Operational Risk & Security, Regulation, Taiwan, Technology & OperationsData & Analytics,Data Management,OperationalRiskSecurity,riskregulation,Taiwan,technology, Data & Analytics,Data Management,Operational Risk & Security,Regulation,Taiwan,Technology & Operations, Keywords:E.Sun Bank, Wan-Li Hsieh, Personal Data Protection Act, CRM, Unica, IBM, Datamart, Netezza, MPP, Predictive Analytics E.Sun Bank, Wan-Li Hsieh, Personal Data Protection Act, CRM, Unica, IBM, Datamart, Netezza, MPP, Predictive Analytics
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