CBK pushes for customer data protection as banks adopt Fintech

The Central Bank of Kenya (CBK) called for the securing of consumer data by innovators even as the country looks towards inventions in financial technology (FINTECH) to drive growth in financial solutions for the country’s financial sector.

This comes in the wake rising cases of data mining the latest being the manipulation of Facebook data by political research firm Cambridge Analytica.

With Kenya fast moving to deepen use of financial technology, the regulator is keen for players to put customer data protection at the center of product development.

Speaking during the Euromoney East Africa Conference that brought together financial players from the region, CBK Governor Patrick Njoroge challenged innovators in FINTECH to ensure data from clients is protected so as to build the trust between technologies and their users.

“The point is to be customer centric. The customer needs to understand that information is not to be used without authorization. They (innovators) need to understand what our concerns are,” Mr Njoroge said.

Mr Njoroge has further advised banks to take advantage of existing information on customers so as to avail more fitting products to their client base.

The governor is however keen on the protection of customer data.

“You can never be too careful with these things (data) and in some sense you need to be sure how you take care of data so that you don’t have one person who has access to all data,” he said.

With changes in the banking sector, banks are increasingly relying on data to respond to customer needs.

However, there is concern that some of the FINTECH products in the market or in development may fail to resonate with customers.

According to the banking regulator, innovators need to keep customer needs at the center of product development.

“With the advent of ‘big data’ banks have an opportunity to learn more about the credit worthiness of individuals,” the CBK governor said.