A.T. Kearney has released a data privacy study, which includes a 7,000-consumer survey, indicating that 96% of digitally-active consumers feel “somewhat” to “extremely” concerned about data collection.
Yet, the survey determined, more than 75% engage in digital payment transactions at least once a month.
The research study, “Consumer Data Privacy: Strategic Opportunities to Address Emerging Consumer Needs,” suggested that a large proportion of consumers are looking for stronger tools and controls to manage access and use of their personal and transaction data in digital commerce.
The level and intensity of consumer digital commerce engagement will continue to increase, according to Kearney, and, for those transacting online, consumers are increasingly using cards-on-file, both at individual retailers and third-party payment providers to make digital purchases. The incidence of card-on-file being the primary payment method for digital purchases grew from 38% in 2015 to 44% in 2016. Among those who keep cards on files with retailers as primary digital purchase payment method, 44% have already given their payment credentials to more than five retailers.
In a contrast, 34% of consumers consider the use of their payment/purchase data to be an invasion of privacy that should be prohibited, but 36% of consumers can see some benefit from data sharing if appropriate consumer compensation is provided.
Kearney added that consumers are interested in the monitoring and reporting of data use by third parties, usage-based compensation schemes to reward consumers, and clear industry protocols and standards around usage and data-sharing.
Consumers view banks as the payment and digital commerce provider most prepared to act in their best interests. Among consumers who engage in digital commerce and said they were willing to share data, 65% rated their primary bank as a provider with whom they were comfortable sharing personal information versus Amazon, 34%, Apple, 22%, Google, 17%, and large national retailers, 10%.
Bob Hedges, lead partner in A.T. Kearney’s financial institutions practice, said, “In the wake of high-profile data breaches, we believe U.S. financial institutions have the strategic opportunity to play a unique role in consumer protection and data privacy, as consumers seek to be both protected as well as have their best interests served in the management of their personal and transaction information.”