UK consumers vow to punish businesses that fail to safeguard their data
16 May 2018 London
Image: Shutterstock
Nearly two in five (39 percent) of UK consumers believe most businesses don’t know how to protect their personal data, according to a new study by Veritas Technologies and 3GEM.
At the same time, the study, Verita’s 2018 Global Data Privacy Consumer survey also found that UK consumers intend to take “bold steps in penalising companies that don’t safeguard their data, while rewarding those that do”.
With the introduction of the stringent compliance, European Union’s General Data Protection Regulation, which will be implemented on 25 May, Veritas found many consumers are closely scrutinising businesses and holding them accountable for the protection of their personal data.
The study found that there were growing concerns around the collection of personal data. Some 66 percent of respondents said they were unwilling to share details about personal finance.
A further 56 percent said they would stop buying from a business that fails to protect their data, while almost half (47 percent) said they would abandon their loyalty to a particular brand and consider turning to a competitor.
Nearly three-quarters (74 percent) claim they would even go so far as to report the business to regulators.
However, the research shows that consumers also intend to reward companies that are properly protecting their data.
Some 46 percent of respondents in the UK said they would spend more money with organisations they trust to look after their data, with over a fifth (21 percent) willing to spend up to 25 percent more with businesses that take data protection seriously.
The study surveyed 12,500 people across 14 countries, including 1,000 in the UK.
Tamzin Evershed, senior director and global privacy lead at Veritas, said: “Trust in businesses has been eroded by breaches and high-profile cases where firms have shown a lack of understanding of how the consumer data they hold is used or shared.”
She added: “As consumers demand more transparency and accountability from businesses, the ‘new norm’ will see consumers rewarding those organisations that have good data hygiene practices in place while punishing those that don't. Businesses must be seen as trusted custodians of data if they want to reap the rewards associated with building consumer confidence.”
At the same time, the study, Verita’s 2018 Global Data Privacy Consumer survey also found that UK consumers intend to take “bold steps in penalising companies that don’t safeguard their data, while rewarding those that do”.
With the introduction of the stringent compliance, European Union’s General Data Protection Regulation, which will be implemented on 25 May, Veritas found many consumers are closely scrutinising businesses and holding them accountable for the protection of their personal data.
The study found that there were growing concerns around the collection of personal data. Some 66 percent of respondents said they were unwilling to share details about personal finance.
A further 56 percent said they would stop buying from a business that fails to protect their data, while almost half (47 percent) said they would abandon their loyalty to a particular brand and consider turning to a competitor.
Nearly three-quarters (74 percent) claim they would even go so far as to report the business to regulators.
However, the research shows that consumers also intend to reward companies that are properly protecting their data.
Some 46 percent of respondents in the UK said they would spend more money with organisations they trust to look after their data, with over a fifth (21 percent) willing to spend up to 25 percent more with businesses that take data protection seriously.
The study surveyed 12,500 people across 14 countries, including 1,000 in the UK.
Tamzin Evershed, senior director and global privacy lead at Veritas, said: “Trust in businesses has been eroded by breaches and high-profile cases where firms have shown a lack of understanding of how the consumer data they hold is used or shared.”
She added: “As consumers demand more transparency and accountability from businesses, the ‘new norm’ will see consumers rewarding those organisations that have good data hygiene practices in place while punishing those that don't. Businesses must be seen as trusted custodians of data if they want to reap the rewards associated with building consumer confidence.”
NO FEE, NO RISK
100% ON RETURNS If you invest in only one asset servicing news source this year, make sure it is your free subscription to Asset Servicing Times
100% ON RETURNS If you invest in only one asset servicing news source this year, make sure it is your free subscription to Asset Servicing Times
