# How automation can help the financial sector meet GDPR requirements
Author:  Pal Sinha, Barnali 
Author URL: https://financedigest.com/author/pal-sinha-barnali
Published: 2018-06-14
Category: FINANCE
Category URL: https://financedigest.com/category/finance
Meta Title: Financial Sector Embraces Robotic Compliance for GDPR
Meta Description: Discover how UiPath RPA can help financial institutions relieve the pressure of GDPR and other compliance regulations through automation and accuracy.
URL: https://financedigest.com/how-automation-can-help-the-financial-sector-meet-gdpr-requirementshtml

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_By **Venu Kannan**, Chief Solutions Officer, UiPath_

What a huge advance it is that the financial sector now has robots to relieve the ever-growing pressure of regulation.

Almost everyone handling or processing personal data now faces vastly increased compliance requirements once the European Union’s General Data Protection Regulation (GDPR) comes into force in May. The new rules cover the [personally identifiable data](https://www.financedigest.com/data-privacy-and-navigation-how-our-personal-data-is-used-in-navigation-apps.html "Data Privacy and Navigation: How our personal data is used in Navigation Apps.") of any European Union or British citizen and are very prescriptive, with penalties for infringement that could amount to four per cent of global revenue. Small wonder, then, that Fortune 500 organisations are reported to have spent $7.8 billion on GDPR so far.

**More regulation than ever**

> For the [financial sector](https://www.financedigest.com/iot-for-the-financial-sector.html "IoT for the Financial Sector") the challenges of GDPR come on top of the plethora of Know Your Customer (KYC) and Anti-Money Laundering regulations. It all amounts to a heavy burden made much weightier by the infamously disparate IT [systems](https://www.financedigest.com/the-role-embedded-finance-systems-will-play-as-commerce-goes-increasingly-digital.html "The Role Embedded Finance Systems Will Play as Commerce Goes Increasingly Digital") that banks and financial institutions have accumulated through the long process of mergers and acquisitions.

Without the power of automation, compliance in this landscape of multiple pitfalls would be a nightmare. Consider for example, the right to be forgotten under GDPR.  Any citizen, or their lawyer, can [demand that any organisation destroys or hands over all personally identifiable data about them that it holds](https://www.financedigest.com/oil-struggles-to-hold-gains-amid-mixed-demand-view.html "Oil struggles to hold gains amid mixed demand view"). This is a right that will continue indefinitely and requires constant monitoring of incoming requests.

Retrieving all that data about a single individual who may have multiple current accounts, savings accounts, mortgages, [credit and debit cards](https://www.financedigest.com/qualifying-for-low-interest-credit-card-consolidation.html "Qualifying For Low Interest Credit Card Consolidation") is never going to be easy for a bank or insurer. Many [businesses simply will not have the resources](https://www.financedigest.com/workforce-management-the-next-cloud-resource-for-businesses.html "Workforce management; the next cloud resource for businesses?") once consumers start exercising their rights under the new regulation. Compliance must be continual – it is not a once-yearly process of annual validation. An organisation must [check all its data against consent and revocation databases in order](https://www.financedigest.com/money-orders-vs-checks-what-you-need-to-know-as-a-consumer.html "Money Orders vs Checks: What You Need to Know as a Consumer") to establish whether there is any right to retain it.

**RPA removes the time-consuming, repetitive work**

Fortunately, [robotic process automation](https://www.financedigest.com/the-implantable-biomaterials-market-to-move-ahead-on-rpa-robotic-process-automation.html "The Implantable Biomaterials Market to move ahead on RPA (Robotic Process Automation)") (RPA) makes this incredible drudgery easier, faster, cheaper and more accurate than using the skills of back-office staff. The software robot becomes a vastly capable virtual compliance officer, able to penetrate into the furthest recesses of any [set of disjointed systems so it can examine and retrieve information](https://www.financedigest.com/health-care-information-systems-market-growth-set-to-surge-significantly-during-2018-2026.html "Health Care Information Systems Market Growth Set to Surge Significantly during 2018 – 2026") just as any skilled member of staff would, but with infinitely greater efficiency. From this tangle of sources, RPA robots can provide the single version of the truth that is required, but at a speed, [scale and level of security that humans](https://www.financedigest.com/increase-in-sales-of-human-insulin-market-to-scale-revenue-growth-in-the-global-market.html "Increase in Sales of Human Insulin Market to Scale Revenue Growth in the Global Market") can never match.

**RPA can [target key](https://www.financedigest.com/japans-inflation-stays-above-bojs-target-key-gauge-hits-four-decade-high.html "Japan’s inflation stays above BOJ’s target, key gauge hits four-decade high") aspects of GDPR compliance**

RPA can help organisations achieve two very important aspects of GDPR compliance. The first is by cleansing [data](https://www.financedigest.com/optable-announces-new-data-clean-room-capabilities.html "Optable Announces New Data Clean Room Capabilities") – regularly purging what should not kept in a database. The second is through the [automation of processes around customer](https://www.financedigest.com/why-no-code-beats-custom-software-and-turnkey-solutions-for-business-automation.html "Why no-code beats custom software and turnkey solutions for business automation") consent, which is an essential requirement under GDPR. Organisations can deploy RPA to provide customers with a portal through which they can log in to obtain a unified, [single view](https://www.financedigest.com/insurance-marketing-is-more-targeted-with-the-single-customer-view.html "Insurance marketing is more targeted with the single customer view") of all data referring to them. Once consent for its retention and use is obtained, the [technology can monitor](https://www.financedigest.com/precise-remote-monitoring-to-steal-the-cell-separation-technologies-market.html "Precise Remote Monitoring to steal the Cell Separation Technologies Market") the use of all such data, flagging up information which is not covered.

In the event of data being used without consent, or of a security breach, RPA will automatically inform the customer, ensuring this [vital aspect of GDPR compliance](https://www.financedigest.com/ifrs-15-moving-away-from-short-term-fixes-is-vital-for-effective-compliance.html "IFRS 15: Moving away from short-term fixes is vital for effective compliance") is achieved. [Regulators view both occurrences with great seriousness and the indications are that any failure to immediately inform data-subjects of breaches](https://www.financedigest.com/russian-regulator-says-mobile-operator-mts-breached-anti-monopoly-laws.html "Russian regulator says mobile operator MTS breached anti-monopoly laws") will result in stiffer penalties.

Fortunately, audit and reporting are in-built into RPA, since each action undertaken by [software robots is logged centrally where it can be monitored](https://www.financedigest.com/precise-remote-monitoring-to-steal-the-patient-registry-software-market.html "Precise Remote Monitoring to steal the Patient Registry Software Market") and updated in relation to new rulings or regulatory directives. Strict access controls, the integration of [advanced data protection technologies](https://www.financedigest.com/recent-technological-advancements-to-propel-growth-of-the-2k-protective-coatings-market-in-foreseeable-future.html "Recent Technological Advancements to Propel Growth of the 2K Protective Coatings Market in Foreseeable Future") and where necessary, encryption, all take security to the highest level possible.

**RPA is low impact, low cost, but highly efficient**

RPA in the [financial sector](https://www.financedigest.com/financial-companies-delivering-better-value-for-customers-in-loyalty-programmes-compared-to-other-sectors.html "Financial companies delivering better value for customers in loyalty programmes compared to other sectors") has already proved its worth in this field many times over. Indeed this is one of its great advantages, since robots can work on compliance functions when they are not fulfilling their other routine, but complex tasks. Being easily [configurable they can be oriented to work on the data](https://www.financedigest.com/amazons-twitch-hit-by-data-breach-due-to-configuration-error.html "Amazon’s Twitch hit by data breach due to configuration error") required for all the various regulations, but with minimal impact.

Compare this with the alternatives which are either resource-intensive manual processing or major IT undertakings such as master data [management projects](https://www.financedigest.com/power-management-integrated-circuit-pmic-market-is-projected-to-grow-at-6-4-during-2021-2028.html "Power Management Integrated Circuit (PMIC) Market is projected to grow at 6.4% During 2021-2028") which eat up substantial amounts of cash and take a great deal of time to implement.

RPA also has one very significant advantage over technologies such as machine learning – it does not in any [way alter the data](https://www.financedigest.com/four-ways-data-and-ai-can-transform-financial-services.html "Four ways data and AI can transform Financial Services"), nor in the process of retrieving and presenting it, does it retain anything, which is a basic requirement of GDPR. It is mechanistic and deterministic and far more appropriate to compliance-related tasks than machine learning-based solutions. RPA is also very much at home with the kind of green-screen legacy technology that some financial institutions may still [operate](https://www.financedigest.com/stellantis-reshuffles-european-financing-operations-through-new-jvs-with-banks.html "Stellantis reshuffles European financing operations through new JVs with banks").

**Outsourcing of RPA makes sense**

As RPA develops and the massive efficiency gains become apparent in relation to compliance, its provision will inevitably move into the outsourcing sector. This makes sense when deadlines and [budgets are tight](https://www.financedigest.com/how-to-move-house-when-youre-on-a-tight-budget-5-key-tips.html "How to move house when you’re on a tight budget? 5 Key tips"). If institutions outsource payroll and human resources, then they can access robotised compliance functions in a similar way. It is clear that outsourcers or systems integrators deploying utility [platforms will broaden the scope](https://www.financedigest.com/cloud-communication-platform-market-2022-scope-of-current-and-future-industry-2030.html "Cloud Communication Platform Market 2022 | Scope of Current and Future Industry 2030") of organisations using RPA.

Whether outsourced or on-premises, RPA is bound to play a major role in meeting the [heavy demands](https://www.financedigest.com/demand-for-heavy-duty-trucks-market-to-register-4-1-growth-during-2018-2027.html "Demand for Heavy Duty Trucks Market to Register 4.1% Growth during 2018-2027") placed on financial institutions by the regulators. It is worth considering the obligation that GDPR places on organisations to implement appropriate technical and organisational measures to achieve compliance. If, in this context, institutions neglect RPA, they risk very high costs and the devastating impact of compliance failures.


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