Almost half of consumers feel more anxious than last year about identity theft, hacking of financial, medical, or other personal info online, about theft of credit card info when shopping online, and unauthorized tracking of their online habits by companies, governments or criminals. Despite this fact, two thirds of consumers trust businesses with their data. These are the findings from recent KPMG study: Me, my life, my wallet.
Consumers are increasingly aware of the value of their data. The research shows that 85 percent of consumers want firms to protect their information without having to ask, and 77 percent are against their data being sold on. Globally, only 37 percent of consumers trust online shopping, because of the amount of data, they have to provide to businesses.
Consumers ranked industries in order of trustworthiness with health care on top and advertising at the bottom. Top three are: Healthcare providers (60%), Banking providers (59%), and Technology companies (54%). Bottom three: Wealth management (37%), Government (37%) and Advertising (26%).
Consumers are more likely to trust firms with the data relevant to their operations. Globally, 71 percent of consumers will trust a banking provider with their financial data, but only 9 percent would trust retailers with this information. Likewise, 47 percent of consumers would trust a telecoms provider with their mobile data, but only 8 percent would trust advertisers.
“Every business needs to think hard about how to use data responsibly to build deeper insights and relationships with their customers. And they have to know that if they don’t, their competitors will”, commented KPMG Global Chair of Consumer & Retail, Willy Kruh.
“Businesses can earn the loyalty of consumers by following four rules for data transparency, while three of them are directly required by GDPR. Be open about why you’re asking for certain types of data. Be clear about how you will protect it. Be honest about whether it is sold or shared outside the organization. Don’t be selfish about the value of data – reward consumers for sharing their data with you“, said Pavol Adamec, KPMG in Slovakia Risk Consulting Executive Director.
While the majority of consumers are willing to provide businesses with data, half (51 percent) of consumers are anxious about identity theft, and the majority (72 percent) don’t trust anyone with their social media data. In fact, additional research highlights that 42 percent of consumers have updated their social media privacy settings in the last 12 months.
The survey shows that a quarter of consumers (24 percent) would not trade their data; however, millennial consumers are more likely (21 percent) than their baby boomer counterparts (5 percent) to trade their data for better customer experience and personalization. Likewise a fifth (19 percent) of millennial consumers would trade their data for better products and services, versus just 8 percent of baby boomers.
KPMG International has conducted extensive research of approximately 25,000 consumers in Brazil, Canada, China, France, India, the UAE, the UK and the US collectively where a majority of the world’s consumers reside and will continue to grow, as well as conducting ethnographic research interviews in each market. Me, my life, my wallet is a deep dive into the story of today’s consumer and the ways humans from every corner of the globe are both fiercely individual but also experiencing a world of technology convergence and changing cultural landscape – and what that means for how they earn, spend and save.
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