If knowledge is power, then data is money. That is, data directs merchants and brands to who’s spending and on what, making it a precious substance in the commercial world.
Moreover, consumers are getting digitally savvy. In 2022 they better understand the value of their personal data, not only to banks and FinTechs but to a host of merchants, brands and other players seeking the ideal consumer personas — while fraudsters work tirelessly to steal it.
This convergence of factors is elevating the already high importance of data security, as consumers increasingly judge commercial brands and finance firms on data security and use.
For The Future Of Authentication In Financial Services Playbook: Finding The Balance Between Security And Convenience, a PYMNTS and Entersekt collaboration, we surveyed over 2,700 U.S. consumers to explore how data security and trust are moving in lock-step for consumers.
The value of personal data flowing through digital channels is now comprehended by consumers who perceive that many entities — from brands to bad actors — want it. This is making consumers more cautious when it comes to how personal data handling is prioritized.
“Consumers are most likely to perceive their personal data as ‘very’ or ‘extremely’ valuable if shared with credit card companies, with 62% saying so,” per the Playbook, “followed by retail merchants at 53%. Only 34% of consumers are comfortable sharing personal data online with credit card companies, and just 39% are comfortable doing so with retail merchants.”
Trust is the true currency in any trading relationship. Here again, consumers’ heightened awareness of online data dangers and steps to thwart fraud go a long way toward trust.
In the study, 65% of consumers said a providers’ emphasis on data security has a high level of impact on trust, with 60% of consumers saying that being given information about how their transactions are secured has a “very” or “extremely” large influence on trust in a brand or bank.
Biometrics is making strides in data security as devices proliferate and smooth omnichannel experiences becomes such an engrained expectation that it only takes seconds to annoy or delight a consumer when authenticating their identity online for any purpose, on any device.
“PYMNTS’ research finds that 61% of consumers are willing to use login methods other than passwords, and consumers who mostly use mobile apps or multiple environments to access digital accounts are the most willing to do so at 68% and 73%, respectively,” per the Playbook.