Privacy regulations will hinder cross-border banking, says Meridien

Privacy regulations will hinder cross-border banking, says Meridien

Differing regulations between countries concerning privacy of customer information will have a profound effect on the way financial institutions utilise CRM and credit-scoring technologies, says a new report from Meridien Research.

The report, "Privacy Management and Compliance: The Tip of the Iceberg", points out that countries around the world have devised widely differing regulations on the collection and usage of customer-specific information.

"Because of cultural attitudes, political influences, advancements in technology, market forces, and now security concerns, customer data privacy has become hotly debated and increasingly regulated," says Dennis Behrman, analyst at Meridien Research. "In the course of researching this subject, we uncovered a multitude of regulations and legislation that varies widely from country to country will greatly impact the operations of financial institutions."

For example, a side effect of the EU's stringent privacy regulations is to now make it very difficult for foreign institutions to expand into Europe, warns Meridien.

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