ICO, Financial Authority Advise Banking Sector on 'Targeted Support' to Customers
Financial institutions may offer "targeted support" to help customers make informed decisions about their finances but must also respect data protection rights and direct marketing preferences, the U.K. ICO and Financial Conduct Authority (FCA) said Thursday.
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Under FCA policy, authorized firms would be able to offer "targeted support" and make suggestions to people if they are in a group of consumers with common characteristics, the authorities said. Those could include customers who might be "drawing down their pensions unsustainably or not saving enough for retirement."
The ICO/FCA statement addressed calls for "regulatory clarity" on targeted support. It noted that companies must process personal information to align customers with a particular customer segment before sending tailored messages, and so must comply with the U.K. GDPR, Data (Use and Access) Act and Privacy and Electronic Communication Regulations.
Compliance includes being transparent with customers about what firms want to do with personal information for targeted support, having a lawful basis for processing personal information and respecting people's information rights such as their right to object to direct marketing, the statement said.
Businesses can engage with their customers about targeted support to explain how it enables effective decision-making and better financial outcomes while ensuring compliance with privacy laws, the authorities said. That promotion can be handled without direct marketing by messages displayed on the firms' websites or mobile apps, recordings on company helplines, or messages posted on corporate social media accounts.
The statement also explained how to respect people's direct marketing preferences and to give them clear choices about receiving targeted support. Regardless of whether they've given permission for direct marketing or targeted support, it said, customers must still continue to receive important messages about their finances, such as warnings about under-saving for retirement or information on where to access support.
The ICO and FCA said they'll consider more options for future engagement regarding targeted support early next year.