Safeguarding personal data is a crucial responsibility for organisations. With stringent data protection regulations, how businesses and organisations store personal data has become more important than ever.
Traditionally, personal data was stored in physical formats, often in paper documents, however, there has been a strong shift towards digital storage. But where is the best place to store personal data and what are the benefits of digital storage over physical documents?
Common Places Businesses Store Personal Data
Personal data can be stored in various formats and locations, depending on the nature of the business and the data handling processes. The most common places where personal data is stored include:
a) Paper-Based Files and Filing Cabinets
Historically, businesses have relied on paper documents and filing cabinets to store personal information, such as customer records, employee details and financial data. Today, many organisations, especially smaller or traditional businesses, still utilise physical filing systems. However, this method is increasingly becoming outdated due to its limitations in terms of accessibility, security and scalability.
b) On-Premises Servers and Hard Drives
Many organisations choose to store data locally on their own servers or hard drives. On-premise storage allows businesses to maintain control over their data infrastructure and ensure compliance with internal policies. However, maintaining these systems can be expensive, and they often lack the flexibility and scalability of cloud-based solutions.
c) Cloud Storage Platforms
Cloud storage has revolutionised the way businesses store personal data. Services like Microsoft Azure, Google Cloud and Amazon Web Services (AWS) offer secure, scalable and cost-effective solutions for storing vast amounts of data. By leveraging cloud storage, organisations can access their data from anywhere in the world, collaborate in real-time, and reduce the risk of data loss due to hardware failures.
d) Customer Relationship Management (CRM) Systems
CRM systems, such as Salesforce and HubSpot, have become a popular choice for businesses looking to store and manage personal data. These systems not only store data but also help organisations streamline customer interactions, track sales activities and analyse customer behaviour. CRMs often come with built-in security features, ensuring that data is encrypted and access is restricted to authorised personnel.
e) Human Resource Information Systems (HRIS)
HR departments store vast amounts of employee data, ranging from personal contact information to salary details. An HRIS provides a centralised platform for storing and managing employee data, ensuring compliance with employment laws and data protection regulations. Digital HRIS systems can also automate many administrative tasks, improving efficiency and reducing errors.
f) Email and Messaging Platforms
Personal data, such as names, addresses and payment details, are often exchanged through email or messaging platforms like Outlook, Gmail or Slack. Although convenient, these platforms pose significant risks if not properly secured, as they can be vulnerable to cyberattacks and phishing attempts. It is essential for businesses to use encryption and multi-factor authentication (MFA) to protect personal data transmitted through these channels.
g) Financial and Accounting Software
Many businesses rely on software like Xero, QuickBooks or Sage to store and manage financial data. These platforms often hold sensitive personal information, such as bank details, tax numbers and payment records. With the move towards digital accounting, these systems help businesses meet regulatory requirements while ensuring that financial data is protected and easily accessible.
50% of businesses have experienced a cyber security breach or attack in the last 12 months
Cyber Security Breaches Survey 2024
Advantages of Storing Data Digitally
The transition from physical paper documents to digital storage has accelerated in recent years, driven by the need for efficiency, security and compliance with data protection regulations. Storing personal data digitally offers numerous advantages over traditional paper-based systems:
Improved Security
One of the most significant advantages of digital storage is the enhanced security it offers. Physical documents can be lost, damaged or stolen, and controlling access to sensitive information is challenging. In contrast, digital storage solutions offer a range of security features such as encryption, firewalls and access controls to protect personal data from unauthorised access and cyber threats.
According to the UK Government’s Cyber Security Breaches Survey 2024, half of businesses (50%) and around a third of charities (32%) report having experienced some form of cyber security breach or attack in the last 12 months. However, organisations with strong digital security measures in place were able to mitigate the damage caused by such incidents.
Compliance with Data Protection Regulations
The Data Protection Act, which was implemented in the UK in 2018, imposes strict requirements on how organisations collect, store and process personal data. Failure to comply with these regulations can result in significant fines. Digital storage solutions make it easier for businesses to meet their legal obligations by providing audit trails, data access controls and automated data retention policies.
For example, cloud storage platforms offer features that enable organisations to quickly locate and delete personal data upon request, ensuring compliance with the Data Protection Act’s right to erasure. This is much harder to achieve with paper-based systems, where finding and destroying specific documents can be time-consuming and prone to errors.
Scalability and Flexibility
Digital storage is far more scalable than physical storage. As businesses grow and collect more data, paper-based systems become cumbersome and inefficient. Filing cabinets take up physical space and finding specific documents can become a logistical challenge. In contrast, digital storage solutions, especially cloud-based platforms, allow businesses to store unlimited amounts of data without the need for additional physical infrastructure.
Moreover, digital systems are highly flexible, allowing organisations to access their data from any location. This has become especially important in recent years, where remote working or hybrid working has become the norm for employees. Digital storage ensures that employees can access the data they need to work effectively, regardless of their location.
Cost Efficiency
While there may be upfront costs associated with implementing digital storage solutions, such as purchasing software or migrating data to the cloud, the long-term savings are substantial. Maintaining physical filing systems involves ongoing expenses, such as printing, filing supplies and storage space. Additionally, the time spent searching for and managing paper documents can be a hidden cost.
Digital storage eliminates many of these expenses by automating document management processes and reducing the need for physical office space. In the long run, businesses that adopt digital storage solutions can expect to see significant cost savings and increased operational efficiency.
Reduced Environmental Impact
Another compelling reason to shift to digital storage is the environmental benefits. The UK is striving to reduce its carbon footprint, and businesses play a key role in this effort. Storing personal data in paper-based formats requires the consumption of vast amounts of paper, ink and energy for printing, as well as the transportation of physical documents. By moving to digital storage, businesses can reduce their reliance on paper and contribute to sustainability goals.
Disaster Recovery
Physical documents are vulnerable to damage from natural disasters and once destroyed, they are often irrecoverable. Digital storage solutions offer built-in disaster recovery options like data backup and replication, ensuring that personal data can be quickly restored in the event of an emergency.
Cloud storage platforms provide automatic backups and the ability to restore data from any point in time. This reduces the risk of data loss and ensures business continuity, even in the face of unexpected disruptions.
Key Digital’s secure digital hosting solutions provide a safe home for your business documents and data. Thinking of going digital? Get in touch with our experts by calling 01282 479466 or email info@key-digital.co.uk