Protecting data in a merger and acquisition

In the flurry of activity during a merger or acquisition, how does a financial institution ensure its sensitive data is protected?

Many financial firms have been confronted with this problem in the past year, as upheaval in the industry has led to a wave of consolidation. Blockbuster M&A deals in recent months include Wells Fargo & Co.'s acquisition of Wachovia Corp. and Bank of America's purchase of Merrill Lynch & Co.

Obviously, companies have a lot to deal with in a merger, but they can't lose sight of information security, especially in a time of industry turmoil, experts say. Whether it's the changing economic environment or the changing bank landscape, customers are worried, which makes security all the more critical, said Jacob Jegher, senior analyst in the banking group at Celent, a Boston-based financial research and consulting firm.

"One thing the banks must focus on is maintaining relationships and building trust or rebuilding trust when it comes to their customers, given how messy the financial services industry has been," he said. "If they don't pay attention to data security, which is a key component of maintaining relationships, they could have a real disaster on their hands. There's no shortage of banks out there. It's a competitive market and customers have to be with a bank they trust."

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Source: searchfinancialsecurity.techtarget.com
By: Marcia Savage