GDPR = General Data Protection Regulation (EU law since 2018).
Goal: Protect personal data (like your bank details, loans, or investments) from misuse, leaks, or theft.
Key Idea: “Your data, your control.”
Why Focus on Financial Data?
💳 Banks, insurers, and fintech firms hold sensitive info (e.g., credit scores, transactions).
💥 Without rules, this data could be hacked, sold, or misused → GDPR acts as a shield.
🔑 Key GDPR Principles for Financial Data (Exam Gold!)
| Principle | What It Means | Example |
|---|---|---|
| Lawfulness | Collect data only with consent or legal reason. | Bank must ask before sharing your data. |
| Purpose Limitation | Use data only for the reason you collected it. | Insurer can’t use your data for ads. |
| Data Minimization | Collect only what’s necessary. | Loan apps can’t ask for your social media. |
| Accuracy | Keep data up-to-date and correct. | Fix errors in your credit report. |
| Storage Limitation | Delete data when no longer needed. | Bank deletes old account data after 10 years. |
| Confidentiality | Protect data with encryption & security. | Encrypt online transactions. |
🔒 Your Rights Under GDPR
- Access: Ask companies what data they have on you.
- Rectification: Correct errors in your data.
- Erasure: Request deletion of your data (“Right to be Forgotten”).
- Data Portability: Move your data to another provider (e.g., switch banks).
- Say No: Reject automated decisions (e.g., AI loan approvals).
⚠️ GDPR Compliance for Financial Firms
S 1: Audit all data (what’s collected, where it’s stored).
S 2: Get explicit consent (no sneaky checkboxes!).
S 3: Encrypt data & report breaches within 72 hours.
S 4: Hire a Data Protection Officer (DPO) if handling large volumes.
S 5: Update contracts with third parties (e.g., cloud providers).
🚨 Penalties for Breaking GDPR
- Fines: Up to €20 million or 4% of global revenue (whichever is higher).
- Reputation Damage: Loss of customer trust.
🎯 Exam/Interview Must-Knows
- Key Articles:
- Article 5: Data protection principles.
- Article 6: Lawful basis for processing data.
- Article 17: Right to erasure.
- Article 32: Security of processing.
- GDPR vs. Old Laws: Stricter fines, broader scope, individual rights.
- Cross-Border Data: Transferring EU data globally requires safeguards (e.g., Standard Contractual Clauses).
📝 FAQ for Interviews
Q: Does GDPR apply outside the EU?
A: Yes! It applies to any company handling EU residents’ data, even if based in the USA/Asia.
Q: What’s a “Data Breach”? Example?
A: Unauthorized access to data (e.g., hackers stealing credit card numbers). Must be reported in 72 hours!
Q: Who enforces GDPR?
A: Data Protection Authorities (DPAs) in each EU country (e.g., ICO in the UK).
📈 Visual Summary
GDPR = Financial Data’s Bodyguard
1. Consent First → ✅ 2. Encrypt Everything → 🔐 3. Delete When Done → 🗑️ 4. Report Breaches Fast → 🚨
💡 Pro Tip: Memorize the 7 principles and key articles—they’re 90% of exam questions!
✨ Key Takeaway: GDPR forces banks and financial firms to treat your data like gold—precious, guarded, and never misused.