In today's digitally driven environment, marketing presents a distinct combination of opportunities and challenges for the financial services sector. Digital trends range from digital brand building and performance-based campaigns to social media handles being channeled by various segments of the BFSI sector. Data analytics, big data, and hyper-personalization are trending based on today's consumer behavior.
Banks are chasing digital consumers. The first year of the pandemic saw a significant increase in new mobile banking registrations, with a staggering 207% increase above the daily average in mid-April. This surge reflects a significant shift by consumers toward digital banking in the wake of the pandemic. The increasing integration of technology and digital in today's BFSI marketing has increased the need for an organized industry regulatory approach to ensure that data is safe and the industry is free from any cyber-attacks. Important regulations such as GDPR, CCPA, and ASCI are important in today's marketing efforts.
Below are some of the industry guidelines that marketers in the BFSI industry must follow. GDPR compliance: The European Union's General Data Protection Regulation (GDPR) is one of the most significant data privacy laws in the world. It provides stiff penalties for violations and sets out strict guidelines for the collection, use, and storage of personal data. Compliance with GDPR is mandatory for BFSI companies that provide services or operations in the EU.
The GDPR requires BFSI marketers to obtain the explicit consent of consumers before collecting personal data for marketing purposes in the context of digital marketing. This includes targeted advertising, email subscriptions, and cookie permissions. BFSI companies must also ensure the privacy and security of their client's data and allow people to access, update and delete their data at any time. Adhering to this compliance is critical in today's competitive BFSI industry.
Cybercrime compliance: Legal Issues: In India, the legal framework to combat cybercrime and financial fraud is protected by important laws such as the IT Act, 2000 and the IPC Act, 1860. Complementing these fundamentals are several other laws aimed at preventing financial crimes. These include the RBI Act, 1934, the Foreign Exchange Management Act, 1999, the Banking Regulation Act, 1949, the Indian Evidence Act, 1872, the Contract Act, 1872, the Negotiable Instruments Act, 1881, and the SARFAESI Act, 2002. It is included. , these laws form a strong legal safeguard against various forms of financial fraud and cyber threats.
CCPA and ASCI obligations: The Department of Consumer Affairs (DoCA) and the Central Consumer Protection Authority (CCPA) are collaborating to protect consumer rights with regard to advertisement publishing. This collaboration will empower consumers in the advertising industry and promote transparency and fairness towards consumers, especially with regard to digital advertising. As digital advertising faces new challenges due to the rapid growth and development of the BFSI industry, this collaborative approach will help digital marketers implement transparent practices.
Fair Practice Code: Marketers operating in the financial industry are obliged to comply with the Code of Fair Practice, which sets out the fundamental principles governing interactions with customers. It serves as a guiding framework to ensure ethical behavior and fair treatment of all customers.
Most importantly, it's important to ensure transparency in your marketing communications by outlining data collection procedures, privacy guidelines, and customer rights in detail. Regulatory bodies like AMFI, SEBI and IRDAI are working to ensure that the interests of consumers are protected in the race for digital growth. Violations of financial marketing regulations can lead to a variety of risks, including legal and regulatory risks, reputational risks, financial risks, operational risks, and can also affect the strategic direction of financial institutions. There is a gender. While marketing in BFSI is on the rise, consistent growth in the industry can only be achieved if companies and marketers adhere to compliance rules and regulations.
