Your Industry  

Advisers concerned on data storage – survey

A poll of 240 advisers conducted by information management provider EDM Group found that 28 per cent of advisers were concerned about how financial services companies manage and store information.

Four in five advisers expected companies to receive harsher fines in the next five years on failures of data management, and 49.1 per cent believed banks were the worst culprits. The poll also found that 18.3 per cent did not trust companies in the mortgage sector to handle information.

Sam Ferguson, chief executive of EDM, said the findings were “alarming”. He added: “Competition in the financial services sector is increasing and their customers are becoming more demanding in terms of the services and products they want. In meeting this challenge, financial services companies have to cope with a huge increase in the volume of information they receive, and how they receive it.

Article continues after advert

“Banks, asset managers and insurers need to become much more efficient in how they manage their information, but our survey suggests that in trying many will fail and increasingly break regulatory guidelines.”

The survey also found that 51 per cent, of advisers expected to avoid more financial services companies in the future due to worries on data.

Adviser comment:
David Crozier, director of County Down-based Navigator Financial Planning, said: “My experience is that losing communications in the post is a much more common problem for providers, more so than losing track of data internally. People should always ensure that they specify what information, if any, they are happy to pass on to third parties.”