business news in context, analysis with attitude

AT Kearney is out with a new Data privacy study, in which it concludes the following:

• “While digitally-active consumers overwhelmingly (96%) express being "somewhat" to "extremely" concerned about data collection and use, more than 75% engage in digital payment transactions at least once a month. As a result, a large portion of consumers are looking for stronger tools and controls to manage access and use of their personal and transaction data in digital commerce.”

• “The incidence of card-on-file being the primary payment method for digital purchases grew from 38% in 2015 to 44% in 2016. Strikingly, among those who keep cards on files with retailers as primary payment method for digital purchases, 44% have already given their payment credentials to be held on file to more than five retailers.”

• “A clear divide exists in the consumer market where 34% of consumers consider the use of their payment/purchase data to be ‘an invasion of privacy that should be prohibited,’ while a counter-balancing 36% of consumers can see some benefit from data sharing if appropriate consumer compensation is rewarded.”

• “Among consumers who engage in digital commerce and are prepared to share their data, 65% of consumers rated their primary bank as a provider with whom they were comfortable sharing personal information. Banks' high rating compared very favorably to lower consumer ratings for Amazon (34%), Apple (22%), Google (17%), and large national retailers (10%).”
KC's View:
The importance of data security certainly is top of mind right now because of the Equifax hack, and I think institutions of all kinds need to take current disquiet extremely seriously.

I think it ought to concern every retailer that banks (does anyone really like their bank?) are seen as more trustworthy than they are, and it ought to concern traditional retailers that Amazon is seen as three times more trustworthy - especially since Amazon has so much more actionable data and actually acts on it.