Consumer Data are collected throughout the last few years: from customer databases, CRM systems, the logistics and surveys. For marketers big data provides unprecedented opportunities because they can generate. 360-degree view of the customer in this way When consumers find it increasingly blazes the discussion on how to collect this data is a threat to their privacy.
This was also confirmed when ING announced that it wanted to carry on the payment information of customers in order to provide potentially interesting offers from businesses. Customers from data analyzes Many people were not served here and the discussion was widely reported in the news. Nevertheless, ING is not the first financial institution that has similar plans.
Many banks use their big data example already for detecting fraud and a payment processor Equens years ago caused many social unrest and concerns with their plans to sell ping data.
You could say that the buzzword ‘big data’ buzzes through the financial world! Banks seem convinced of the usefulness of big data. If they combine data from a consumer in a smart way with their own data, creates tremendous opportunities for better service and / or new services. However, big data has many opponents. For example, they found that big data incites privacy violations, abuse of personal data and even discrimination by drawing wrong conclusions.
Especially violating privacy is a named position opponents. They lay the blame on the law because they think the rules are unclear and companies can easily collect data. However, I believe that it is not the law, because these rules are essentially nothing more than a mechanism to weigh. Interests at stake Everyone interprets the concept of privacy in his own way. As a result, the discussion is not about law, but about feelings of consumers who feel their privacy compromised.
According to the Dutch Data Protection Authority (CBP) organizations may only process personal data if there is a good reason for it or if there myself ‘unambiguous’ consent was given. This implies that consent need not be in writing per se but must be beyond doubt.
In addition, the companies have to prove that the consumer has given permission and that he did not under pressure of circumstances or of a certain dependence on the company. Voluntarily In addition, the data being processed must be necessary under the law. With necessary they mean:
- it is necessary for the execution of a contract;
- that it is a legitimate interest;
- whereas it is necessary for a statutory requirement;
- whether it is necessary for the performance of a public law duty.
Although most companies are in the collection of data on the law and not necessarily turn out badly for many consumers, consumer attitudes remain divided.
Damage to reputation
What if personal information falling into the wrong hands? The risk of data theft continues to grow after all. An examination of the Verizon Data Breach Investigations Report (DBIR) shows that financial services were often in 2012, a victim of data theft, which has huge implications, such as bank fraud. A total of 37 percent of data theft was committed in the financial sector, such as a bank or insurance company, and this trend continues in 2014. Financial services providers must continue to invest in the security of their services to protect consumers against
In addition, it is crucial for a company to communicate about what is being done with consumer data openly and honestly, and to ensure that data is not shared if the consumer does not consent here with third parties. This is especially important for financial institutions because they are compared to other companies possess many privacy-sensitive information. Financial organizations should therefore collecting data to work carefully otherwise they cause reputational damage.
According Exploring Strategic Risk Deloitte big data business reputations harms currently the most. The reputation in the field of big data has to do with the fact that consumers feel that their money is earned back their data in particular.
worth the money
Consumers are becoming increasingly aware of the fact that his personal data are worth a lot of money. The data it produces, where he lost a lot of time. Indeed, his And time is money. So it would only be fair if he gets paid for that too, right? Companies like Data Coup and Handshake agree with this. Consumers through their websites may collect their personal data and for sale. In the past, data were only used to sell products and services. Now it is itself a commodity, a product sold, used or can be analyzed and thus get value.
To make use of personal data use financial services are no longer around here. With the huge growth of big data and the growing concern of consumers, companies are forced to listen to these sounds and thinking where both parties benefit. To a solution Thus for example, a bank may provide in the form of cash or discount if they can resell. Private data consumers a reward They can benefit both the bank and the consumer of selling data and have people who do not cooperate the privacy to which they are entitled.