IDEAS home Printed from https://ideas.repec.org/a/ris/jofitr/3473.html
   My bibliography  Save this article

How can banks empower their customers to flag potential vulnerabilities?

Author

Listed:
  • de Skuba, Przemek

    (Capco)

  • Gabellini, Bianca

    (Capco)

  • Taylor, Jessica

    (Capco)

Abstract

Customer vulnerability is one of the key concerns of the Consumer Duty regulation, a very welcome ESG-aligned enhancement of financial institutions’ governance. Adherence to the regulation requires a clear focus on data collection that helps lenders manage the impact of consumer vulnerabilities without imposing penalties or resulting in a negative impact on clients. There are two parts of the problem that need to be addressed: firstly, how to capture vulnerability data by encouraging clients/consumers to voluntarily submit the information (the behavioral aspect) and secondly, how to technically capture, manage, and store this data to ensure compliance with the Consumer Duty regulation. This article considers both problems and reviews the tools from behavioral science that can encourage customer disclosure and two key technology solutions (data lakes and blockchain) to comply with the capture, management, and storage of data whilst remaining GDPR compliant and fully aligned to the objective of voluntary submission of information regarding vulnerabilities by clients/consumers

Suggested Citation

  • de Skuba, Przemek & Gabellini, Bianca & Taylor, Jessica, 2023. "How can banks empower their customers to flag potential vulnerabilities?," Journal of Financial Transformation, Capco Institute, vol. 58, pages 150-159.
    • Handle: RePEc:ris:jofitr:3473
    as

    Download full text from publisher

    File URL: https://www.capco.com/-/media/2194DB5D6FAA49648C6FDDE3E8402B99.ashx
    File Function: Full text
    Download Restriction: no
    ---><---

    More about this item

    Keywords

    Banking; Customer Centricity; data; vulnerability data; Consumer Duty regulation;
    All these keywords.

    JEL classification:

    • G18 - Financial Economics - - General Financial Markets - - - Government Policy and Regulation
    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • G41 - Financial Economics - - Behavioral Finance - - - Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making in Financial Markets

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ris:jofitr:3473. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Prof. Shahin Shojai (email available below). General contact details of provider: http://www.capco.com/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.