There’s a deep disconnect between corporate data practices and people’s expectations around transparency and data privacy. As companies collect more personal data, people are increasingly concerned about how their data is being used. For a lot of people, data collection is an invasion of their privacy and a practice that can easily be abused, leading to mistrust and suspicion of many businesses.
A new KPMG survey confirms that data collection is rising, with 70 per cent of the business leaders surveyed reporting that their companies have increased collection of consumer personal data over the last year.
At the same time, people report feeling increasingly uneasy about these practices, with 86 per cent of respondents saying data privacy is a growing concern for them and about two-thirds (68 per cent) saying that the level of data collection by companies is concerning.
“This split between business and consumer sentiment isn’t new, but its persistence shows that businesses have a long way to go to make the public more comfortable with how they are collecting, using and safeguarding data,” says Orson Lucas, KPMG US Privacy Services leader. “Failure to bridge this divide could present a real risk of losing access to the valuable data and insights that drive business growth.”
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The survey respondents are worried about how their data is being used by organisations, and many of these concerns are grounded in a fundamental lack of trust. The survey found that:
- 83 per cent would not willingly share their data to help businesses make better products and services
- 64 per cent say companies are not doing enough to protect consumer data
- 47 per cent believe their smart devices are listening to their conversations
- 40 per cent say they don’t trust companies to use their personal data ethically
- 13 per cent don’t trust their own employer to use their personal data ethically
Many business leaders acknowledge there is reason for concern. Speaking about their own employer, 33 per cent of business leaders say consumers should be concerned about how their personal data is used by their company, and 29 per cent acknowledge that their company sometimes uses unethical data collection methods.
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“People tend to underreport behaviors that place them or their organization in a negative light,” says Lucas. “Having more than one in four report that their business sometimes uses unethical data collection methods is troubling and helps explain why consumers are wary.”
To bridge this gap, enterprises must prioritise data protection and take meaningful action to build consumer trust. Approximately 62 per cent of business leaders say their companies should be doing more to strengthen existing data protection measures. The vast majority of the general population respondents (88 per cent) also say they want corporations to take the lead in establishing corporate data responsibility.
Take the lead in establishing corporate data responsibility. Some 49 per cent of the consumers admitted that they don’t know how to protect their personal data. But 64 per cent said that companies aren’t doing much to help. Most of the respondents said they want businesses to take the lead in implementing data responsibility and sharing details on how consumers can protect their own data.
Make data anonymous whenever possible. Almost half of the consumers surveyed said they’d be more comfortable with data collection if the information were made fully anonymous.
Businesses should consider ways to be more explicit and transparent about how consumer data will be used. Most general population respondents (76 per cent ) say they want more transparency about how their personal data is being used by companies, and 40 per cent say they would willingly share their personal data if they knew exactly who would use it and how it would be used. Right now, only 53 per cent of business leaders say their company shows how such data will be used.
“Businesses should consider how leveraging data discovery and governance tools, as well as exploring the implications of new use cases powered by emerging tech like machine learning and AI, can enhance data protection and build consumer trust,” says Martin Sokalski, KPMG US Emerging Technology and Digital Solutions leader. “These technologies can help organisations build greater visibility into their data practices, from better data tracking to helping ensure integrity and fairness throughout the life cycle.”
