Reset: theme 7 – data security, privacy and control

| December 20, 2019

2020 marks the dawn of a new decade. Rachel Bevans of the Healthy Brand Company explores theme seven of ten themes driving brands into the next decade.

In an environment where data is exploding and breaches are increasing, 74 per cent of Australian consumers claim their confidence in a brand’s data security influences how they spend money with that brand.

Thirty-six per cent say that they would spend more with a trusted and secure brand, 24 per cent say they would stop spending with a brand they believe has insecure data practices and 14 per cent say they would spend less with a brand they believe has insecure data practices. Yet levels of trust in data security are still low, particularly in industries that have experienced breaches – retail, financial services and travel.

In July of this year, the Consumer Data Right (CDR) came into play with the Banking Sector being the first industry to implement – coined “Open Banking” – to be followed by the energy and telecommunication sectors.

Its aim is “to provide greater choice and control for Australians over how their data is used and disclosed”, giving individual and business customers better access to their own data and ability to direct its secure transfer for trusted third parties.

Simultaneously, the ACCC Digital Platforms Inquiry report was released: identifying that consumers are not adequately informed about how their data is collected and used and have little control over the huge range of data collected; and recommending companies such as Google and Facebook make measures to rectify.

Knowing that consumer trust is imperative for brands to grow, data security, privacy and control will be a key driver for the next decade.