“First and foremost are the Information Commissioner’s Office (ICO) regulations, specifically GDPR Article 5, which states that organisations must hold accurate information on their customers and it must be kept up to date. While the ICO doesn’t practically verify the data accuracy, it remains an obligation. Another important one is the Consumer Duty. Treating customers fairly becomes possible only when you have accurate information about them.”

Utilities need accurate data for communication purposes and to protect the vulnerable. In the event of a power outage, an energy company needs to be able to contact a customer immediately, not write them a letter. An up-to-date Priority Services Register (PSR) is also vital. And when a customer passes away or an account becomes dormant, it’s important to maintain accurate records. “That applies across utilities and banks, pensions and investments, because inaccurate data in this instance might lead to adversely impacting the consumer.”

As one example, financial services firms can fall foul of the law by retaining financial assets after a customer has died, rather than passing them on to their estate. For utilities, if data management is poor, or it’s not known that a customer has died, the company might continue charging them direct debits. Operational inefficiencies may also arise in the form of inaccurate or failed communication or simply wasted resources. Customer satisfaction or trust in the organisation could be affected. Pranjic adds, “Brand damage and reputational risk are something to consider as well; they can occur if the data errors become public, or stories are picked up in the media.”

As noted, regulatory fines are substantial under the GDPR and Consumer Duty. “Consumer duty impacts include failing to identify and support vulnerable customers or continuing to provide unsuitable products because you don’t have current information about their changed circumstances,” Pranjic explains. Companies holding inaccurate data about customers may also miss out on commercial opportunities. “There is a significant risk that without accurate data you might not be selling the right products, or selling them successfully, or upselling certain products effectively.”

If the risks are manifold, data management services companies can help by providing specialists that understand the complexity of data quality and the regulatory landscape, and provide access to rich, multiple sources of reference data. A good data management services provider will continuously improve the data and carry out periodic cleansing. “Data degrades over time,” says Pranjic. “Data management providers can implement ongoing monitoring to maintain consistent high-quality data. They will also offer a user-friendly interface and reporting tools to make the data actionable.

“And while many data platforms can tell you if something is wrong, specialists can actually fix it for you.”[BH1]