Banks and financial institutions are in the midst of a shift to more advanced technology. However, with an influx of technology comes more opportunity for a data breach or hack that compromises sensitive financial information. Luckily, the government is cracking down on regulatory compliance and stronger cybersecurity measures to ensure customer’s information is safe.
Although the stronger regulatory compliance laws increase security to customer information, this may cost companies more in protective measures. How are companies keeping track of all these new regulations? How will this affect the local government level? What is coming down the pipeline for businesses in 2020? Agenda Discovery’s meeting agenda software can help you and your company keep up with city and government regulations involving financial compliance. Not staying up-to-date with the latest city council meeting schedule might be costly.
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Stronger Cybersecurity Measures
With the most recent data breaches, the banking and finance industry is making moves to tighten their cybersecurity. In fact, The Economist has established that the world’s most valuable resource is data and no longer oil. Because of this, 72% of banks will be spending at least 20% of their budget on cybersecurity. Companies want to avoid being a victim to a breach like the Equifax Data Breach that impacted 147 million people and cost the company millions of dollars. Some things banks are looking to enhance and protect for their customers include customer authentication, mobile app security, and dynamic linking.
California Consumer Privacy Act (CCPA)
The California Consumer Privacy Act introduced new privacy rights for customers, which forces companies that do business in the state, to protect their information. The CCPA took effect on January 1st, 2020, but it will start being enforced on July 1, 2020. The law states that companies will now be subject to delete personal information two times a year.
The consequences of not complying with the law can be steep. In fact, the penalty can include a fine of $2,500 to $7,500, which may not seem like a lot to a billion-dollar corporation. However, for each event this law is violated, a customer can file a lawsuit against the company.
The government is now mandating banks, especially larger banks with over $50 billion in assets, to adhere to a more aggressive regulatory agency environment. Privacy Rules under the Gramm-Leach-Bliley Act will require financial institutions to safeguard sensitive information. Customers will also have more options and opportunities to opt-out of having their data shared with third-party vendors. Banks and financial institutions will now be required to encrypt all customer information. This is somewhat modeled after the CCPA and has been in effect since 2019. However, in 2020 banks will start to see the laws go into full effect and are paving the road to the rest of the future. Not every financial institution will be subject to these regulations as of right now; however, that could change in time.
Staying Up-to-Date with Agenda Discovery
With Agenda Discovery’s legislative tracking software, you can know all the latest city council calendar events that will affect your financial business. In fact, you can be involved with the decision-makers of the banking regulations knowing all the latest city council agenda information. Contact us today to request a demo and see how you can receive alerts straight to your inbox.