Black Friday may be the biggest shopping day of the year and it's likely that large firms will continue the tradition of bungling consumers' personal data. Amazon just admitted to losing an 'unknown number' of its customers' email addresses. 2017 was a year to remember (forget?): a record 178.96 million records were exposed in the U.S. So, you might assume that consumers would be very concerned about sharing their payment deets with any merchant at this point. You would also be wrong.
Cool when sharing personal details during an online transactionOn the eve of Thanksgiving, Tearsheet and Branded Research asked over 6,000 people in the U.S. about how they felt sharing their personal details when making online payments. We found that most consumers -- about 59 percent -- have the same level of comfort sharing their personal details during an online transaction as they did last year. Men were about twice as likely as women to say they feel more comfortable sharing personal details when making online payments. About one-third of consumers over age 55 say they feel less comfortable sharing personal details when making online payments. Privacy means different things to different people, and some are very willing to share their data for tangible benefits. "For instance, some people put their life milestones on social media – prioritizing connectivity with friends and family; others allow insurance companies to track their driving for cheaper rates," said Caroline Louveaux, Mastercard's chief privacy officer. "Yet, at the same time, people around the world are increasingly skeptical about the security and protection of their data—this can be a barrier to building trusted relationships. We believe that data must be handled with full respect for the individual."
Freaked out about data sharing between fintech apps and banksWhen you start asking consumers about how they feel about their fintech apps and banks sharing data, though, they sing a very different tune. In a survey conducted by The Clearing House earlier this year, nearly two-thirds of respondents said they are very or extremely concerned about the privacy of their data when using fintech apps. Some in the industry are crafting their own response. The Financial Data Exchange (FDX) is a nonprofit trying to unify the financial industry around a common, interoperable, royalty-free standard for the secure access of consumer and business financial data. More than twenty firms -- including Bank of America, Citi, and Chase -- have joined FDX, which operates as an independent subsidiary of the Financial Services Information Sharing and Analysis Center (FS-ISAC).
"A majority of American consumers are highly concerned about data privacy and data sharing when using financial apps,” says Lila Fakhraie, co-chair of FDX and manager of the Digital Banking API team, including the data sharing program, at Wells Fargo. "FDX's Durable Data API and operating framework will help address these concerns by allowing the industry to move away from credential sharing and empowering consumers to control account data they share with third-party applications in a standardized way." Mastercard and IBM have taken a different approach. Both firms have co-founded, Trūata, an independent data trust that is designed to anonymize data and conduct data analytics in full compliance with the GDPR. GDPR went into effect in Europe in May and empowered users to take back control of their data. "We saw this milestone as an opportunity to emphasize the role of data for innovation and the respect of the individual’s privacy in our day-to-day business," said Mastercard's Louveaux. "With Trūata, we are furthering our commitment to crafting privacy-centric and ethical solutions that bring real, tangible benefits to people and our partners."