GDPR’s Resounding Impacts on Identity Verification
In addition to existing AML, KYC, CIP and FINRA regulations, a new financial regulation acronym has arrived — the GDPR. The General Data Protection Regulation was approved by the European Union Parliament in 2016 and will take full effect by May of 2018. The GDPR essentially strengthens protections for data transparency and privacy of all EU citizens, with some key impacts on the operations of financial institutions.
Under the GDPR, data subjects have the right to know exactly what their personal data is being used for, obtain an electronic copy of their data, and have the data controller delete or stop processing their data at any moment.
Most importantly, data subjects will have the right to give or withdraw consent at their discretion, and requests for consent must be clear and intelligible. According to the GDPR website:
In the case of non-sensitive personal data, unambiguous consent must be given, but when processing sensitive personal data, “nothing short of opt-in will suffice.”
The GDPR applies to the data of any EU resident, regardless of where a company operates or where the data is being processed. Failure to comply can result in fines of up to four percent of annual global turnover.
Take a deeper look at new identity verification methods poised to end the battle against fraud once and for all.
In the uncertain aftermath of Brexit, the best bet is to practice compliance. The UK government has indicated that it will implement similar legislation to follow the GDPR, and in any case, UK companies that serve EU consumers will likewise be subject to the GDPR.
Steve Ely, CEO of eCredable, has observed this increased emphasis on consumer privacy and consent trending for years now. He sees it fitting right in with the Urjanet platform. “The neat thing about the way the Urjanet API works is that the consumer has to grant us the credentials to login to the utility website in order for Urjanet to pull the data. So, inherently, the consumer is giving us permission by giving us their username, password, and account number.”
Incorporating opt-in consumer consent into the identity verification process will save an abundance of time and resources down the line. A platform like Urjanet’s that asks for account credentials can help financial institutions stay ahead of the regulatory curve and ensure compliance.
To learn more about how Urjanet’s utility data can help streamline digital identity verification, download our eBook: Who’s Who? Identity Verification in a Digital World.
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About Amy Hou
Amy Hou is a Marketing Manager at Urjanet, overseeing content and communications. She enjoys writing about the latest industry updates in sustainability, energy efficiency, and data innovation.