ACCA Applied Knowledge · Business and Technology · The impact of advances in technology
A bank's finance director wants to use customer transaction data to develop targeted marketing offers. Which of the following is the most significant data protection concern that the bank should address before doing so?
The key concern is whether personal data is used lawfully and only for specified purposes, with customers informed. Data protection principles require fairness, transparency and purpose limitation, so reusing transaction data for marketing without a lawful basis risks legal breach and reputational damage.
- AWhether the data can be stored cheaply enough in the cloud
- BWhether personal data is used only for lawful, specified purposes and customers have been informedCorrect
- CWhether the analytics software can process unstructured data
- DWhether the marketing department has enough staff to run the campaigns
Explanation
Data protection principles require personal data to be processed lawfully, fairly and for specified purposes, with transparency to individuals. Using transaction data for new marketing purposes without informing customers or having a lawful basis risks breaching these rules. The other options are practical or cost issues, not data protection concerns.
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