The information from this article is based on an interview with David Hewick from RBC Caribbean on the Straight the BATT live show.
Hewick stated, “We’re in a world where banking has always been largely about information and data and in a digital economy that’s just becoming truer but the number of players in the ecosystem that we have to interact with is getting bigger”. David is the Senior Director of Payments, Digital and Automation at RBC Caribbean.
He also acknowledged that there are several financial services – particularly around payments – that are part of the digital economy driven by players such as PayPal, Google Pay, and Shopify. These organizations are making use of the commercial prospects provided by the digital economy, but they all facilitate financial transactions.
Why do Banks Need to Collect Customer Data?
When opening personal or commercial accounts with the bank, customers may sometimes feel that the bank is requesting too much information. However, Hewick shared some insight into why the banks need to collect as much information about their customers. They are:
- Without Customer Data, The Banks Will Not Be Able to Provide Services
To provide financial services, banks must collect information from their customers to ensure that they receive the most accurate service/s based on their needs. Ultimately, without the collection of customer data, banks will not be capable of providing financial services to their customers.
- Banks are required by law to collect customer data
Financial services in general and banks, in particular, are quite heavily regulated and there is quite a bit of required information that the banks are required by law to collect from their customers.
- Safety comes first
Let’s say a customer already has an account with the bank and signs up for digital banking services, whenever the customer signs into their digital accounts (via mobile app or the bank’s website), the banks must take necessary measures to ensure that the customer and their accounts are protected.
Therefore, the banks may ask a number of questions to verify the customer’s information. With regards to digital, the bank has to know the customer’s username and security question so that when the customer logs on to their digital banking, the bank can verify their information electronically.
Want to learn more about the role of data in digital banking in T&T? Check out our video below:
This article is based on a discussion with David Hewick on the Straight off the BATT Live Series from the Bankers Association of Trinidad and Tobago. The show aims to help you understand financial literacy and education. Join our mailing list, here.