Credit Management magazine October 2017

CM September 2017.indd 1 22/08/2017 11:07
CMNEWS
A round-up of news stories from the
world of consumer and commercial credit
Written by – Sean Feast and Alex Simmons
Small businesses remain
ignorant of impact of new data
regulation
LESS than one in ten SME owners
in the UK fully understand what
the forthcoming EU General Data
Protection Regulation (GDPR) actually
means for their business, or have taken the
appropriate steps to prepare themselves
for it.
The new framework, which is designed
to strengthen and unify data protection for
all individuals within the European Union
(EU), will hand out tough punishments
for those who fail to comply with new
rules around the storage and handling
of personal data. The regulation comes
into force in May 2018, but nearly half (46
percent) of all SME bosses, representing
more than 2.5million firms in the UK have
not even heard of it.
Furthermore, GDPR will also introduce
a duty on all organisations to report
certain data breaches to the relevant
supervisory authority, and in some cases to
the individuals affected, as well as giving
customers the right to be forgotten which
requires firms to erase all their information.
This is a considerable step change and
will affect many small and medium-sized
organisations, particularly as recent
industry figures show that two thirds (66
percent) of SMEs have been a victim of
cyber-crime since their launch.
In the latest Aldermore SME business
owners Future Attitudes study, more than
a fifth (22 percent) of SMEs and their
customers have been directly affected by
a data breach in the past two years. More
than half (55 percent) of business owners
are concerned about cyber-crime and
the impact it might have on their firms, a
further two in five (39 percent) SME bosses
also anticipate that a cyber-attack could
have a significant financial impact on their
business.
Surprisingly only a third (34 percent) of
businesses see protection against cybercrime
as a high priority and have taken
steps to protect themselves, considering
cyber-crime can involve something as
simple as having business emails hacked
and subsequent data stolen or intercepted.
A further fifth (22 percent) realise it is an
important issue but haven’t found the time
to look into appropriate safeguards, with a
further one in ten (12 percent) saying that
they cannot afford to shield themselves
adequately.
What is perhaps even more surprising
is that a quarter (25 percent) of business
owners say protection against cyberattacks
is not an important issue for their
businesses. The research also reveals
that only a half (49 percent) of UK SMEs
currently have data breach policies in
place around the use of email, internet and
mobile devices.
Ignorance and fear of the principlesbased
GDPR appears to mirror concerns
expressed at the CSA’s UK Credit and
Collections Conference (UKCCC) by Jo
Pedder, Head of Policy & Engagement at the
Information Commissioner’s Office (ICO).
Although those in the credit industry
appear to be considerably better briefed,
there are still those who see GDPR as little
more than a ‘debtors’ charter’, especially
in relation to the concept of having
one’s credit history erased. She stressed,
however, that its intentions were still
being misunderstood: “GDPR is a way of
capitalising on the opportunities opened
up by the digital world,” She said. “It is not
there to impede innovation.”
aldermore.co.uk csa-uk.com
CM
CREDIT MANAGEMENT
SEPTEMBER 2017 £10.00
GDPR
The new face of
data regulation
Kevin Reed gives his
take on Carillion's
woes. Page 15
Interview with an
alternative finance
pioneer. Page 16
THE CICM MAGAZINE FOR
CONSUMER AND COMMERCIAL
CREDIT PROFESSIONALS
September's
issue of Credit
Management
magazine
>FINANCIAL CROWN
Fintech is helping London maintain its place as the world’s top
financial centre despite Brexit uncertainty, a new report suggests.
The Global Financial Centres Index (GFCI) measures financial centres
based on the business environment, human capital, infrastructure,
financial sector development and reputation. The research shows
that confidence dropped in most areas over the past six months.
However, London remained in first place, despite a slight fall in its
fortunes. zyen.com
>OUT THE STABLE
Lloyds Bank Commercial Banking has launched its new direct bank feed
service to help clients with their daily accounting processes. The service
sends current account transaction information safely and securely to a
participating accounting software provider so businesses don’t have to
manually input their bank statements. Previously, businesses would have to
manually upload files from their online banking system and, in some cases,
use unauthorised third-party software with inherent security risks.
commercialbanking.lloydsbank.com
The Recognised Standard / www.cicm.com / October 2017 / PAGE 6