Personal Data Protection in the Japanese Financial Services Industry

August 9, 2006

Abstract

Tokyo, Japan August 9, 2006

There are still causes for concern at large Japanese domestic financial institutions regarding measures to protect personal information.

Concern for personal information leaks has been rising in Japan in recent years, and nowadays, financial institutions in Japan are required to undertake stricter organizational measures. In the new Celent report, , Celent found that despite increased regulation there are ongoing causes for concern. According to the survey, several companies pointed out that there were concern for human error risk that could be never zeroed, and for data located on numerous paper, instead of digital data.

Celent carried out a survey of 10 major domestic banks, security firms, and insurance carriers aiming to analyze their security measures to protect personal information. The report provides an overview of financial institutions' compliance with the Financial Service Agency guidelines and the Financial Information Systems Center (FISC) standards and what security measures they have implemented.

"Japan's domestic financial institutions are undertaking organizational efforts to protect personal information. However that does not guarantee corporate safety," says Yumiko Manchu, Celent analyst and author of the report. "In the midst of ongoing business mergers and expansion, financial institutions, whether focused on domestic business or not, will have the need to strategically consider regulations and take measures that will contribute to their business."

Celent surveyed 10 major domestic banks, security firms, and insurance companies, studied their organizational measures and analyzed their main concerns.

The 21-page report contains four figures and one table. A table of contents is available here.

 

Celent is a research and advisory firm dedicated to helping financial institutions formulate comprehensive business and technology strategies. Celent publishes reports identifying trends and best practices in financial services technology and conducts consulting engagements for financial institutions looking to use technology to enhance existing business processes or launch new business strategies. With a team of internationally based analysts, Celent is uniquely positioned to offer strategic advice and market insights on a global basis. Celent is a member of the Oliver Wyman Group, which is a wholly-owned subsidiary of Marsh & McLennan Companies [NYSE: MMC].

Media Contacts

North America
Michele Pace
mpace@celent.com
Tel: +1 212 345 1366

Europe (London)
Chris Williams
cwilliams@celent.com
Tel: +44 (0)782 448 3336

Asia (Tokyo)
Yumi Nagaoka
ynagaoka@celent.com
Tel.: +81 3 3500 3023

Table of Contents

Tokyo, Japan August 9, 2006

Executive Summary 3
Introduction 4
  Background 5
  Survey Objectives 6
Personal Data Protection Issues 9
  Personal Data Protection Measures 10
  FISC Standards 12
Areas of Concern 12
  Document Management Issues 12
  Management of Suppliers and Personnel 13
Countermeasures 14
  Rationalizing Processes 14
  Third Party Certification 15
Conclusion 19
Objectivity and Methodology 20

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