Recherche avancée

Sur d’autres sites (7141)

• Data Privacy Issues to Be Aware of and How to Overcome Them

  9 mai 2024, par Erin

  Data privacy issues are a significant concern for users globally.

  Around 76% of US consumers report that they would not buy from a company they do not trust with their data. In the European Union, a 2021 study found that around 53% of EU internet users refused to let companies access their data for advertising purposes.

  These findings send a clear message : if companies want to build consumer trust, they must honour users’ data privacy concerns. The best way to do this is by adopting transparent, ethical data collection practices — which also supports the simultaneous goal of maintaining compliance with regional data privacy acts.

  So what exactly is data privacy ?

  

  Data privacy refers to the protections that govern how personal data is collected and used, especially with respect to an individual’s control over when, where and what information they share with others.

  Data privacy also refers to the extent to which organisations and governments go to protect the personal data that they collect. Different parts of the world have different data privacy acts. These regulations outline the measures organisations must take to safeguard the data they collect from their consumers and residents. They also outline the rights of data subjects, such as the right to opt out of a data collection strategy and correct false data. 

  As more organisations rely on personal data to provide services, people have become increasingly concerned about data privacy, particularly the level of control they have over their data and what organisations and governments do with their data.

  Why should organisations take data privacy issues seriously ?

  Organisations should take data privacy seriously because consumer trust depends on it and because they have a legal obligation to do so. Doing so also helps organisations prevent threat actors from illegally accessing consumer data. Strong data privacy helps you : 

  Comply with data protection acts

  Organisations that fail to comply with regional data protection acts could face severe penalties. For example, consider the General Data Protection Regulation (GDPR), which is the primary data protection action for the European Union. The penalty system for GDPR fines consists of two tiers :

  • Less severe infringements — Which can lead to fines of up to €10 million (or 2% of an organisation’s worldwide annual revenue from the last financial year) per infringement.
  • More severe infringements — This can lead to fines of up to €20 million (or 4% of an organisation’s worldwide annual revenue from the last financial year) per infringement.

  The monetary value of these penalties is significant, so it is in the best interest of all organisations to be GDPR compliant. Other data protection acts have similar penalty systems to the GDPR. In Brazil, organisations non-compliant with the Lei Geral de Proteção de Dados Pessoais (LGPD) could be fined up to 50 million reals (USD 10 million) or 2% of their worldwide annual revenue from the last financial year.

  Improve brand reputation

  Research shows that 81% of consumers feel that how an organisation treats their data reflects how they treat them as a consumer. This means a strong correlation exists between how people perceive an organisation’s data collection practices and their other business activities.

  

  Data breaches can have a significant impact on an organisation, especially their reputation and level of consumer trust. In 2022, hackers stole customer data from the Australian private health insurance company, Medibank, and released the data onto the dark web. Optus was also affected by a cyberattack, which compromised the information of current and former customers. Following these events, a study by Nature revealed that 83 percent of Australians were concerned about the security of their data, particularly in the hands of their service providers.

  Protect consumer data

  Protecting consumer data is essential to preventing data breaches. Unfortunately, cybersecurity attacks are becoming increasingly sophisticated. In 2023 alone, organisations like T-Mobile and Sony have been compromised and their data stolen.

  One way to protect consumer data is to retain 100% data ownership. This means that no external parties can see your data. You can achieve this with the web analytics platform, Matomo. With Matomo, you can store your own data on-premises (your own servers) or in the Cloud. Under both arrangements, you retain full ownership of your data.

  Try Matomo for Free

  Get the web insights you need, while respecting user privacy.

  Start for free

  No credit card required

  What are the most pressing data privacy issues that organisations are facing today ?

  Today’s most pressing data privacy challenges organisations face are complying with new data protection acts, maintaining consumer trust, and choosing the right web analytics platform. Here is a detailed breakdown of what these challenges mean for businesses.

  Complying with new and emerging data protection laws

  Ever since the European Union introduced the GDPR in 2018, other regions have enacted similar data protection acts. In the United States, California (CCPA), Virginia (VCDPA) and Colorado have their own state-level data protection acts. Meanwhile, Brazil and China have the General Data Protection Law (LGPD) and the Personal Information Protection Law (PIPL), respectively.

  For global organisations, complying with multiple data protection acts can be tough, as each act interprets the GDPR model differently. They each have their own provisions, terminology (or different interpretations of the same terminology), and penalties.

  A web analytics platform like Matomo can help your organisation comply with the GDPR and similar data protection acts. It has a range of privacy-friendly features including data anonymisation, IP anonymisation, and first-party cookies by default. You can also create and publish custom opt-out forms and let visitors view your collected data.

  

  Today’s most pressing data privacy challenges organisations face are complying with new data protection acts, maintaining consumer trust, and choosing the right web analytics platform. Here is a detailed breakdown of what these challenges mean for businesses.

  Complying with new and emerging data protection laws

  Ever since the European Union introduced the GDPR in 2018, other regions have enacted similar data protection acts. In the United States, California (CCPA), Virginia (VCDPA) and Colorado have their own state-level data protection acts. Meanwhile, Brazil and China have the General Data Protection Law (LGPD) and the Personal Information Protection Law (PIPL), respectively.

  For global organisations, complying with multiple data protection acts can be tough, as each act interprets the GDPR model differently. They each have their own provisions, terminology (or different interpretations of the same terminology), and penalties.

  A web analytics platform like Matomo can help your organisation comply with the GDPR and similar data protection acts. It has a range of privacy-friendly features including data anonymisation, IP anonymisation, and first-party cookies by default. You can also create and publish custom opt-out forms and let visitors view your collected data.

  Try Matomo for Free

  Get the web insights you need, while respecting user privacy.

  Start for free

  No credit card required

  Maintaining consumer trust

  Building (and maintaining) consumer trust is a major hurdle for organisations. Stories about data breaches and data scandals — notably the Cambridge Analytical scandal — instil fear into the public’s hearts. After a while, people wonder, “Which company is next ?”

  One way to build and maintain trust is to be transparent about your data collection practices. Be open and honest about what data you collect (and why), where you store the data (and for how long), how you protect the data and whether you share data with third parties. 

  You should also prepare and publish your cyber incident response plan. Outline the steps you will take to contain, assess and manage a data breach.

  Choosing the right web analytics platform

  Organisations use web analytics to track and monitor web traffic, manage advertising campaigns and identify potential revenue streams. The most widely used web analytics platform is Google Analytics ; however, many users have raised concerns about privacy issues. 

  When searching for a Google Analytics alternative, consider a web analytics platform that takes data privacy seriously. Features like cookieless tracking, data anonymisation and IP anonymisation will let you track user activity without collecting personal data. Custom opt-out forms will let your web visitors enforce their data subject rights.

  What data protection acts exist right now ?

  

  As time goes on and more countries introduce their own data privacy laws, it becomes harder for organisations to adapt. Understanding the basics of each act can help streamline compliance. Here is what you need to know about the latest data protection acts.

  General Data Protection Regulation (GDPR)

  The GDPR is a data protection act created by the European Parliament and Council of the European Union. It comprises 11 chapters covering the general provisions, principles, data subject rights, penalties and other relevant information.

  The GDPR established a framework for organisations and governments to follow regarding the collection, processing, storing, transferring and deletion of personal data. Since coming into effect on 25 May 2018, other countries have used the GDPR as a model to enact similar data protection acts.

  General Data Protection Law (LGPD)

  The LGPD is Brazil’s main data protection act. The Federal Republic of Brazil signed the act on August 14, 2018, and it officially commenced on August 16, 2020. The act aimed to unify the 40 Brazilian laws that previously governed the country’s approach to processing personal data.

  Like the GDPR, the LGPD serves as a legal framework to regulate the collection and usage of personal data. It also outlines the duties of the national data protection authority, the Autoridade Nacional de Proteção de Dados (ANPD), which is responsible for enforcing the LGPD.

  Privacy Amendment (Notifiable Data Breaches) for the Privacy Act 1988

  Established by the Australian House of Representatives, the Privacy Act 1988 outlines how organisations and governments must manage personal data. The federal government has amended the Privacy Act 1988 twice — once in 2000, and again in 2014 — and is committing to a significant overhaul.

  The new proposals will make it easier for individuals to opt out of data collection, organisations will have to destroy collected data after a reasonable period, and small businesses will no longer be exempt from the Privacy Act.

  United States

  

  The United States does not have a federally mandated data protection act. Instead, each state has been gradually introducing its data protection acts, with the first being California, followed by Virginia and Colorado. Over a dozen other states are following suit, too.

  • California — The then-Governor of California Jerry Brown signed the California Consumer Privacy Act (CCPA) into law on June 28, 2018. The act applies to organisations with gross annual revenue of more than USD 25 million, and that buy or sell products and services to 100,000 or more households or consumers.
  • Virginia — The Virginia Consumer Data Protection Act (VCDPA) took effect on January 1, 2023. It applies to organisations that process (or control) the personal data of 100,000 or more consumers in a financial year. It also applies to organisations that process (or control) the personal data of 25,000 or more consumers and gain more than 50% of gross revenue by selling that data.
  • Colorado — Colorado Governor Jared Polis signed the Colorado Privacy Act (ColoPA) into law in July 2021. The act applies to organisations that process (or control) the personal data of 100,000 or more Colorado residents annually. It also applies to organisations that earn revenue from the sale of personal data of at least 25,000 Colorado residents.

  Because the US regulations are a patchwork of differing legal acts, compliance can be a complicated endeavour for organisations operating across multiple jurisdictions. 

  How can organisations comply with data protection acts ?

  One way to ensure compliance is to keep up with the latest data protection acts. But that is a very time-consuming task.

  Over 16 US states are in the process of signing new acts. And countries like China, Turkey and Australia are about to overhaul — in a big way — their own data privacy protection acts. 

  Knowledge is power. But you also have a business to run, right ? 

  That’s where Matomo comes in.

  Streamline data privacy compliance with Matomo

  Although data privacy is a major concern for individuals and companies operating in multiple parts of the world — as they must comply with new, conflicting data protection laws — it is possible to overcome the biggest data privacy issues.

  Matomo enables your visitors to take back control of their data. You can choose where you store your data on-premises and in the Cloud (EU-based). You can use various features, retain 100% data ownership, protect visitor privacy and ensure compliance.

  Try the 21-day free trial of Matomo today, start your free analytics trial. No credit card required.

  Try Matomo for Free

  21 day free trial. No credit card required.

  
  

  Your email address
  

  Your website address
  

  Your Analytics subdomain will be .matomo.cloud (change)

  Choose your analytics subdomain
  

  .matomo.cloud

  I accept the terms and conditions and data processing agreement (DPA)

  
  Your information will be used to create an account on our cloud service. For more information please consult our privacy policy.
  
  
  

  Start improving your websites now

  

• Strategies for Reducing Bank Customer Acquisition Cost [2024]

  24 septembre 2024, par Daniel Crough — Banking and Financial Services

  Acquiring new customers is no small feat — regardless of the size of your team. The expenses of various marketing efforts tend to pile up fast, even more so when your business operates in a highly competitive industry like banking. At the same time, marketing budgets continue to decrease — dropping from an average of 9.1% of total company revenue in 2023 down to 7.7% in 2024 — prompting businesses in the financial services industry to figure out how they can do more with less.

  That brings us to bank customer acquisition cost (CAC) — a key business metric that can reveal quite a bit about your bank’s long-term profitability and potential for achieving sustainable growth. 

  This article will cover the ins and outs of bank customer acquisition costs and share actionable tips and strategies you can implement to reduce CAC.

  What is customer acquisition cost in banking ? 

  

  The global market volume of neobanks — fintech companies and digital banking platforms, often referred to as “challenger banks” — was estimated at $4.96 trillion in 2023. It’s expected to continue growing at a compound annual growth rate (CAGR) of 13.15% in the coming years, potentially reaching $10.44 trillion by 2028.

  That’s enough of an indicator that the financial services industry is now a highly competitive landscape where companies are often competing for the attention of a relatively limited audience. 

  Plus, several app-only banks based in Europe have made significant progress in attracting new customers to their financial products : 

  

  Unsurprisingly, this flurry of competition is putting upward pressure on customer acquisition and retention costs across the banking sector.

  Customer acquisition cost (CAC) — the sum of all costs and resources related to acquiring an additional customer — is one of the key business metrics to keep an eye on when trying to maximise your return on investment (ROI) and profitability, especially if your company operates in the banking industry.

  Here’s the basic formula you can use to calculate the cost of acquisition in banking : 

  Customer Acquisition Cost (CAC) = Total Amount Spent (TS) / Total New Customers Acquired (TNC)

  In essence, it requires you to divide the total cost of acquiring consumers — including sales and marketing expenses — by the total number of new customers your company has gained within a specific timeframe.

  There’s one thing you need to keep in mind : 

  The customer acquisition process involves more than just your marketing and sales departments. 

  While marketing and sales channels play a crucial role in this process, the list of expenses that may contribute to customer acquisition costs in banking goes well beyond that. 

  Here’s a quick breakdown of the customer acquisition cost formula to show you which costs make up the total amount spent : 

  • All advertising and marketing costs, including traditional (direct mail, billboards, TV and print advertising) and digital channels (email, Google ads, social media and influencer marketing)
  • Cost of outsourced marketing services, including any independent contractors involved in the process 
  • Salaries and commissions for the marketing team and sales representatives
  • Software subscriptions, including marketing software and web analytics tools 
  • Other overhead and operational costs 

  And until you’ve taken all these expenses into account, you won’t be able to accurately estimate how much it actually costs you to attract potential customers.

  Another thing to keep in mind is that there’s no universal definition of “good CAC.” 

  The average customer acquisition cost varies across different industries and business models. That said, you can generally expect a higher-than-average CAC in highly competitive sectors — namely, the financial, manufacturing and real estate industries. 

  Importance of tracking customer acquisition cost in banking 

  

  Customer acquisition costs are an important indicator of a banking business’s potential growth and profitability. Monitoring this fundamental business metric can provide data-driven insights about your current bank customer acquisition strategy — and offers a few notable benefits : 

  • Measuring the performance and effectiveness of different channels and campaigns and making data-driven decisions regarding future marketing efforts
  • Improving return on investment (ROI) by determining the most effective strategies for acquiring new customers 
  • Improving profitability by assessing the value per customer and improving profit margins 
  • Benchmarking against industry competitors to see where your business’s CAC stands compared to the banking industry average

  At the risk of stating the obvious, acquiring new customers isn’t always easy. That’s true for many highly competitive industries — especially the banking sector, which is currently witnessing the rapid rise of digital disruptors. 

  Case in point, the fintech market alone is currently valued at $312.98 billion and is expected to reach $556.70 billion by 2030, following a CAGR of 14%.

  

  However, strong competition is only one of the challenges banks face throughout the process of attracting potential customers. 

  Here are a few other things to keep in mind : 

  • Ethical business practices and strict compliance requirements when it comes to the privacy and security of customer data, including meeting data protection standards and ensuring regulatory compliance
  • Lack of personalisation throughout the customer journey, which today’s customers view as a lack of understanding of — and even interest in — their needs and preferences 
  • Limited mobile banking capabilities, which further points to a failure to innovate and adapt — one of the leading risks that financial services may face 

  7 strategies for reducing bank customer acquisition costs 

  

  When working on optimising your banking customer acquisition strategy, the key thing to keep in mind is that there are two sides to improving CAC : 

  On the one hand, you have efforts to decrease the costs associated with acquiring a new customer — and on the other, you have the importance of attracting high-value customers. 

  1. Eliminate friction points in the customer onboarding process

  One of the first things financial institutions should do is examine their existing digital onboarding process and look for friction points that might cause potential customers to drop off. After all, a streamlined onboarding process will minimise barriers to conversion, increasing the number of new customers acquired and improving overall customer satisfaction. 

  Keep in mind that, at the 30-day mark, finance mobile apps have an average user retention rate of 3% : 

  

  That says a lot about the importance of providing a frictionless onboarding experience as a retail bank or any other financial institution. 

  Granted, a single point of friction is rarely enough to cause customers to churn. It’s typically a combination of several factors — a lengthy sign-up process with complicated password requirements and time-consuming customer identification or poor customer service, for example — that occur during the key moments of the customer journey.

  In order to keep tabs on customer experiences across different touchpoints and spot potential barriers in their journey, you’ll need a reliable source of data. Matomo’s Funnels report can show you exactly where your website visitors are dropping off. 

  2. Get more personalised with your marketing efforts 

  Generic experiences are rarely the way to go — especially when you’re contending for the attention of prospective customers in such a competitive sector. 

  Besides, 62% of people who made an online purchase within the last six months have said that brands would lose their loyalty following a non-personalised experience. 

  What’s more shocking is that only a year earlier, that number stood at 45%.

  

  When it comes to improving marketing efficiency and sales strategies, 94% of marketers agree that personalisation is key : 

  

  It’s evident that personalised marketing supported by behavioural segmentation can significantly improve conversion rates — and, most importantly, reduce acquisition costs. 

  Of course, it’s virtually impossible to deliver targeted, personalised marketing messaging without creating audience segments and detailed buyer personas. Matomo’s Segmentation feature can help by allowing you to split website visitors into smaller groups and get much-needed insights for behavioural segmentation. 

  3. Build an omnichannel marketing strategy 

  Customer expectations, behaviours and preferences are constantly evolving, making it crucial for financial services to adapt their customer acquisition strategies accordingly. Meeting prospective customers on their preferred channels is a big part of that. 

  The issue is that modern banking customers tend to move across different channels. That’s one of the reasons why it’s becoming increasingly more difficult to deliver a unified experience throughout the entire customer journey and close the gap between digital and in-person customer interactions. 

  Omnichannel marketing gives you a way to keep up with customers’ ever-evolving expectations :

  Adopting this marketing strategy will allow you to meet customers where they are and deliver a seamless experience across a wide range of digital channels and touchpoints, leading to more exposure — and, ultimately, increasing the number of acquired customers.

  Matomo can support your omnichannel efforts by providing accurate, unsampled data needed for cross-channel analytics and marketing attribution. 

  4. Work on your social media presence 

  Social networks are among the most popular — and successful — digital marketing channels, with millions (even billions, depending on the platform) of active users. 

  In fact, 89% of marketers report using Facebook as their main platform for social media marketing, while another 80% use Instagram to reach their target audience and promote their business. 

  

  And according to The State of Social Media in Banking 2023 report, nine out of ten banks (89%) consider social media is important, while another 88% are active on their social media accounts. 

  That is to say, even traditionally conservative industries — like banking and finance — realise the crucial role of social media in promoting their services and engaging with customers on their preferred channels : 

  It’s an excellent way for businesses in the financial sector to gain exposure, drive traffic to their website and acquire new customers. 

  If you’re ready to improve social media visibility as part of your multichannel efforts, Matomo can help you track social media activity across 70 different platforms. 

  5. Shift the focus on customer loyalty and retention 

  Up until this point, the focus has mainly been on building new business relationships. However, one thing to keep in mind is that retaining existing customers is generally cheaper than investing in customer acquisition activities to attract new ones. 

  Of course, customer retention won’t directly impact your CAC. But what it can do is increase customer lifetime value, contributing to your company’s revenue and profits — which, in turn, can “balance out” your acquisition costs in the long run.

  That’s not to say that you should stop trying to bring in new clients ; far from it. 

  However, focusing on increasing customer loyalty — namely, delivering excellent customer service and building lasting business relationships — could motivate satisfied customers to become brand advocates. 

  As this survey of customer satisfaction for leading banks in the UK has shown, when clients are satisfied with a bank’s products and services, they’re more likely to recommend it. 

  

  Positive word-of-mouth recommendations can be a powerful way to drive customer acquisition. You can leverage that by launching a customer referral program and incentivising loyal customers to refer new ones to your business. 

  6. A/B test different elements to find ones that work 

  We’ve already underlined the importance of understanding your audience ; it’s the foundation for optimising the customer journey and delivering targeted marketing efforts that will attract more customers. 

  Another proven method that can be used to refine your customer acquisition strategy is A/B or split testing. 

  It involves testing different versions of specific elements of your marketing content — such as language, CTAs and visuals — to determine the most effective combinations that resonate with your target audience. 

  Besides your marketing campaigns, you can also split test different variants of your website or mobile app to see which version gets them to convert. 

  Matomo’s A/B Testing feature can be of huge help here : 

  

  7. Track other relevant customer acquisition metrics 

  To better assess your company’s profitability, you’ll have to go beyond CAC and factor in other critical metrics — namely, customer lifetime value (CLTV), churn rate and return on investment (ROI). 

  Here are the most important KPIs you should monitor in addition to CAC : 

  • Customer lifetime value (CLTV), which represents the revenue generated by a single customer throughout the duration of their relationship with your company and is another crucial indicator of customer profitability 
  • Churn rate — the rate at which your company loses clients within a given timeframe — can indicate how well you’re retaining customers 
  • Return on investment (ROI) — the revenue generated by new clients compared to the initial costs of acquiring them — can help you identify the most effective customer acquisition channels 

  These metrics work hand in hand. There needs to be a balance between the revenue the customer generates over their lifetime and the costs related to attracting them.

  Ideally, you should be aiming for lower CAC and customer churn and higher CLTV ; that’s usually a solid indicator of financial health and sustainable growth. 

  Lower bank customer acquisition costs with Matomo 

  Acquiring new customers will require a lot of time and resources, regardless of the industry you’re working in — but can be even more challenging in the financial sector, where you have to adapt to the ever-changing customer expectations and demands. 

  The strategies outlined above — combined with a thorough understanding of your customer’s behaviours and preferences — can help you lower the cost of bank customer acquisition.

  On that note, you can learn a lot about your customers through web analytics — and use those insights to support your customer acquisition process and ensure you’re delivering a seamless online banking experience. 

  If you need an alternative to Google Analytics that doesn’t rely on data sampling and ensures compliance with the strictest privacy regulations, all while being easy to use, choose Matomo — the go-to web analytics platform for more than 1 million websites around the globe. 

  CTA : Start your 21-day free trial today to see how Matomo’s all-in-one solution can help you understand and attract new customers — all while respecting their privacy. 

• A Guide to GDPR Sensitive Personal Data

  13 mai 2024, par Erin

  The General Data Protection Regulation (GDPR) is one of the world’s most stringent data protection laws. It provides a legal framework for collection and processing of the personal data of EU individuals.

  The GDPR distinguishes between “special categories of personal data” (also referred to as “sensitive”) and other personal data and imposes stricter requirements on collection and processing of sensitive data. Understanding these differences will help your company comply with the requirements and avoid heavy penalties.

  In this article, we’ll explain what personal data is considered “sensitive” according to the GDPR. We’ll also examine how a web analytics solution like Matomo can help you maintain compliance.

  What is sensitive personal data ?

  The following categories of data are treated as sensitive :

  1. 1. Personal data revealing :
        • Racial or ethnic origin ;
        • Political opinions ;
        • Religious or philosophical beliefs ;
        • Trade union membership ;
     2. Genetic and biometric data ;
     3. Data concerning a person’s :
        • Health ; or
        • Sex life or sexual orientation.

  

  Sensitive vs. non-sensitive personal data : What’s the difference ?

  While both categories include information about an individual, sensitive data is seen as more private, or requiring a greater protection. 

  Sensitive data often carries a higher degree of risk and harm to the data subject, if the data is exposed. For example, a data breach exposing health records could lead to discrimination for the individuals involved. An insurance company could use the information to increase premiums or deny coverage. 

  In contrast, personal data like name or gender is considered less sensitive because it doesn’t carry the same degree of harm as sensitive data. 

  Unauthorised access to someone’s name alone is less likely to harm them or infringe on their fundamental rights and freedoms than an unauthorised access to their health records or biometric data. Note that financial information (e.g. credit card details) does not fall into the special categories of data.

  

  Legality of processing

  Under the GDPR, both sensitive and nonsensitive personal data are protected. However, the rules and conditions for processing sensitive data are more stringent.

  Article 6 deals with processing of non-sensitive data and it states that processing is lawful if one of the six lawful bases for processing applies. 

  In contrast, Art. 9 of the GDPR states that processing of sensitive data is prohibited as a rule, but provides ten exceptions. 

  It is important to note that the lawful bases in Art. 6 are not the same as exceptions in Art. 9. For example, while performance of a contract or legitimate interest of the controller are a lawful basis for processing non-sensitive personal data, they are not included as an exception in Art. 9. What follows is that controllers are not permitted to process sensitive data on the basis of contract or legitimate interest. 

  The exceptions where processing of sensitive personal data is permitted (subject to additional requirements) are : 

  • Explicit consent : The individual has given explicit consent to processing their sensitive personal data for specified purpose(s), except where an EU member state prohibits such consent. See below for more information about explicit consent. 
  • Employment, social security or social protection : Processing sensitive data is necessary to perform tasks under employment, social security or social protection law.
  • Vital interests : Processing sensitive data is necessary to protect the interests of a data subject or if the individual is physically or legally incapable of consenting. 
  • Non-for-profit bodies : Foundations, associations or nonprofits with a political, philosophical, religious or trade union aim may process the sensitive data of their members or those they are in regular contact with, in connection with their purposes (and no disclosure of the data is permitted outside the organisation, without the data subject’s consent).
  • Made public : In some cases, it may be permissible to process the sensitive data of a data subject if the individual has already made it public and accessible. 
  • Legal claims : Processing sensitive data is necessary to establish, exercise or defend legal claims, including legal or in court proceedings.
  • Public interest : Processing is necessary for reasons of substantial public interest, like preventing unlawful acts or protecting the public.
  • Health or social care : Processing special category data is necessary for : preventative or occupational medicine, providing health and social care, medical diagnosis or managing healthcare systems.
  • Public health : It is permissible to process sensitive data for public health reasons, like protecting against cross-border threats to health or ensuring the safety of medicinal products or medical devices. 
  • Archiving, research and statistics : You may process sensitive data if it’s done for archiving purposes in the public interest, scientific or historical research purposes or statistical purposes.

  In addition, you must adhere to all data handling requirements set by the GDPR.

  Important : Note that for any data sent that you are processing, you always need to identify a lawful basis under Art. 6. In addition, if the data sent contains sensitive data, you must comply with Art. 9.

  Explicit consent

  While consent is a valid lawful basis for processing non-sensitive personal data, controllers are permitted to process sensitive data only with an “explicit consent” of the data subject.

  The GDPR does not define “explicit” consent, but it is accepted that it must meet all Art. 7 conditions for consent, at a higher threshold. To be “explicit” a consent requires a clear statement (oral or written) of the data subject. Consent inferred from the data subject’s actions does not meet the threshold. 

  The controller must retain records of the explicit consent and provide appropriate consent withdrawal method to allow the data subject to exercise their rights.

  Examples of compliant and non-compliant sensitive data processing

  Here are examples of when you can and can’t process sensitive data :

  • When you can process sensitive data : A doctor logs sensitive data about a patient, including their name, symptoms and medicine prescribed. The hospital can process this data to provide appropriate medical care to their patients. An IoT device and software manufacturer processes their customers’ health data based on explicit consent of each customer. 
  • When you can’t process sensitive data : One example is when you don’t have explicit consent from a data subject. Another is when there’s no lawful basis for processing it or you are collecting personal data you simply do not need. For example, you don’t need your customer’s ethnic origin to fulfil an online order.

  Other implications of processing sensitive data

  If you process sensitive data, especially on a large scale, GDPR imposes additional requirements, such as having Data Privacy Impact Assessments, appointing Data Protection Officers and EU Representatives, if you are a controller based outside the EU.

  Penalties for GDPR non-compliance

  Mishandling sensitive data (or processing it when you’re not allowed to) can result in huge penalties. There are two tiers of GDPR fines :

  • €10 million or 2% of a company’s annual revenue for less severe infringements
  • €20 million or 4% of a company’s annual revenue for more severe infringements

  In the first half of 2023 alone, fines imposed in the EU due to GDPR violations exceeded €1.6 billion, up from €73 million in 2019.

  Examples of high-profile violations in the last few years include :

  • Amazon : The Luxembourg National Commission fined the retail giant with a massive $887 million fine in 2021 for not processing personal data per the GDPR. 
  • Google : The National Data Protection Commission (CNIL) fined Google €50 million for not getting proper consent to display personalised ads.
  • H&M : The Hamburg Commissioner for Data Protection and Freedom of Information hit the multinational clothing company with a €35.3 million fine in 2020 for unlawfully gathering and storing employees’ data in its service centre.

  One of the criteria that affects the severity of a fine is “data category” — the type of personal data being processed. Companies need to take extra precautions with sensitive data, or they risk receiving more severe penalties.

  What’s more, GDPR violations can negatively affect your brand’s reputation and cause you to lose business opportunities from consumers concerned about your data practices. 76% of consumers indicated they wouldn’t buy from companies they don’t trust with their personal data.

  Organisations should lay out their data practices in simple terms and make this information easily accessible so customers know how their data is being handled.

  Get started with GDPR-compliant web analytics

  The GDPR offers a framework for securing and protecting personal data. But it also distinguishes between sensitive and non-sensitive data. Understanding these differences and applying the lawful basis for processing this data type will help ensure compliance.

  Looking for a GDPR-compliant web analytics solution ?

  At Matomo, we take data privacy seriously. 

  Our platform ensures 100% data ownership, putting you in complete control of your data. Unlike other web analytics solutions, your data remains solely yours and isn’t sold or auctioned off to advertisers. 

  Additionally, with Matomo, you can be confident in the accuracy of the insights you receive, as we provide reliable, unsampled data.

  Matomo also fully complies with GDPR and other data privacy laws like CCPA, LGPD and more.

  Start your 21-day free trial today ; no credit card required. 

  Disclaimer

  We are not lawyers and don’t claim to be. The information provided here is to help give an introduction to GDPR. We encourage every business and website to take data privacy seriously and discuss these issues with your lawyer if you have any concerns.

  Try Matomo for Free

  21 day free trial. No credit card required.

  
  

  Your email address
  

  Your website address
  

  Your Analytics subdomain will be .matomo.cloud (change)

  Choose your analytics subdomain
  

  .matomo.cloud

  I accept the terms and conditions and data processing agreement (DPA)

  
  Your information will be used to create an account on our cloud service. For more information please consult our privacy policy.
  
  
  

  Start improving your websites now