With the internet boom and other connected technologies, eCommerce and fintech have become two of the genre’s pillars. Together, they attract a majority of the traffic that the internet channels see on a daily basis.
But the party has been hampered significantly by the advent of data privacy laws like the GDPR, CCPA, etc. and there are several aspects of eCommerce and fintech that are facing threats due to the imposition of these legislations.
While the rules and regulations are here to stay, businesses must adapt to these changes and the prevailing privacy regulations.
Technically, these sites can comply with these regulations manually as well, but the number of issues that doing something like that would give rise to is simply unfathomable.
So, there’s only one logical step that these companies can take: the employment and integration of automated compliance tools and systems with their operations.
There are several aspects of the eCommerce business that can be made perfectly compliant with the data protection regulations by using these tools, and that is something that we will be taking a look at here.
So, what exactly are eCommerce and fintech?
Besides being terms that we come across virtually, on a daily basis, these are pretty expansive topics and encompass a wide range of subjects.
When it comes to eCommerce, everything that is done from a business perspective, to earn a specific amount of revenue, falls within the ambit of eCommerce.
Besides the major B2C players like Amazon, several services fall within eCommerce as well, and everything from DoorDash, Uber, etc. can be considered to be a part of this grouping as well.
When all these companies are taken together, you can get an idea of the scale and size that this industry possesses, and complying with the data privacy regulations is quite a big deal for the players operating in eCommerce.
When it comes to fintech, the meaning is quite evident from the name, as fintech is just an abbreviation for financial technology, and everything from online trading candles to online currency markets, and more, comprises the vast fintech industry.
By nature, fintech handles a large amount of sensitive client data, which, if leaked, can spell a major financial disaster for a lot of people.
This massive scale and vulnerability of this industry make compliance with data privacy extremely important for these sectors, and automation is one of the ways in which this can be made possible. The process in which this can be done is as follows.
Cookies
When it comes to computers, cookies are not something that we all have drooled over at some point or the other, but rather a set of data packets and tools that are used by websites, businesses, and apps, to collect data regarding their respective clients or visitors.
The data thus collected, can be harvested to create personalized profiles, while the individuals reserve the right to cancel the cookies whenever they want to do so.
This ensures businesses comply with the data privacy regulations while improving the business as well. Now, several cookie consent platforms are available on the market, with companies like Adzapier making some of the best ones out there.
A versatile consent management system
When it comes to developing the personal profiles of clients, with the motive of delivering a custom user experience, a good consent management system from companies like Adzapier can prove to be a good option.
This helps businesses collect and manage the data compliance that they receive from their clients, and this would help them automate their systems while adhering to the data privacy regulations of the land as well.
Combined with the cookie and DSAR systems, consent management systems help businesses immensely, and the best part is that they are available as a single suite in most cases. They wouldn’t just help businesses comply with the laws there but help the company grow as well.
Automated processes
Manually complying with each and every regulation is downright impossible for businesses operating in this space, thanks to the sheer scale and range of this industry.
An automated compliance system helps with daily processes like DSAR, etc. Using an automated system doesn’t just reduce the amount of time, money, and resources that could’ve been used somewhere else, they also help reduce human errors.
These automated processes are custom-tuned to adhere to the geographical differences and the various rules that are implemented and amended from time to time. This is a major advantage for businesses that operate across state or national lines.
These are some of the steps and processes that automated privacy systems would offer, and incorporating them within the main workings of the business can prove to be a major benefit for them as well.
Now, let us take a look at some of the risks that businesses in this space might face if they don’t practice the right compliance procedures.
- Non-compliance with the various regulations that are in place may open up the company to legal proceedings and fines, and in numerous cases, it has been witnessed that these fines can be pretty exorbitant.
- Data protection compliances are extremely important as they help keep private data from getting breached. It has been observed in several situations that private data gets leaked to external sources that may have negative motives. By complying with the regulations, this can be avoided, and that would be a welcome thing to do from a business as well as legal perspective.
- If it becomes public knowledge that the business isn’t following the right data procedures and practices, they may face a public backlash, and overall bad press, something that can prove to be pretty bad for the business.
Final take
When it comes to data privacy, fintech and eCommerce companies are some of the most vulnerable ones out there, and the business model that they follow requires them to handle large volumes of sensitive customer data.
By using the aforementioned tools and practices, these companies and businesses can comply with global data privacy laws like never before.
