Bank customer relationship management systems and data protection

Abstract

Purpose: This dissertation evaluates how effectively banks in Malta are following the Data Protection Act principles and it also tackles how customers view banks in this respect. Through the customer relationship management process banks collect information about their customers. This information is to be kept within the territory of the bank and is not available to everyone. Despite these regulations, customers normally do not trust banks, thinking that the information is subject to leakages. This situation is undesirable because it means a bank could lose its clients and reputation, and can therefore be subject to reductions in revenues. It is hard enough to gain the customers' trust in the first place, while losing it is quite an easy feat. Design and Findings: This study took a qualitative and a quantitative approach. The qualitative approach was used to conduct interviews with bank managers and the quantitative approach was used by distributing Likert scale questionnaires to various bank customers. Conclusions: The author concluded that although Data Protection Act is obligatory for every bank to adhere to, there need to be more understanding on the issue. From the findings it was concluded that banks are following the Data Protection Act in a proper manner but customers are not that sure of it. This implies that banks need to inform customers more on this issue. Due to this lack of information customers are not trusting banks to the full. Value of this study: Customers sometimes see banks as untrustworthy. This study is important in that it points out that banks need to increase customer awareness and understanding of their processes with regards to following the Data Protection Act.