Safeguarding Personal Data in the Digital Banking era in Kenya
DOI:
https://doi.org/10.66563/aqpe6z32Abstract
In the algorithm - driven era, data is the spark that powers the engine of the banking sector, driving transactions and decisions. In Kenya, safeguarding personal data is key in building trust especially in the banking sector. Data is invaluable and its mishandling has put the banking sector under scrutiny with hefty penalties imposed on its mishandling by the Data Commissioner. While proliferation of Artificial intelligence (AI), cloud computing, big data and blockchain is driving financial inclusion, enhancing accessibility and efficiency in the banking sector, it poses privacy risks. This paper examines the relationship between data and the banking sector, emphasizing on the urgency of safeguarding personal data. By highlighting the key data infringement patterns in the banking sector, focusing on determined cases and highlighting loopholes in banking practices in Kenya that make personal data in their control vulnerable, it identifies the causes of the infringements. This paper delves into the consequences of mishandling personal data and emphasises on the need of protecting personal data as Kenya continues to embrace technology to enhance customer trust, gain competitive advantage and avoid financial and reputational harm. The paper then offers recommendations such as adoption of stringent policy, use of technology to build resistant systems and advocates for balanced approach between progressive and innovative banking and privacy protection. In conclusion the paper envisions a banking sector that integrates innovation with privacy at its core. The future of banking in Kenya hinges on striking a balance between progress, innovation and privacy.
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