As Facebook founder Mark Zuckerberg faced off with the U.S. Congress this week on the company’s data practices, American consumers were confronted with an uncomfortable reality: Almost nothing we do is unseen. Our computers, smartphones, Fitbits and video doorbells – the digital matrix of everyday life – are collecting information constantly. The result is personalized marketing offers, better digital security, “intelligent” products and services. But the cost is unsettling
This week, we consider the value of privacy. Have we already traded away our individual liberties? Or can we find some essential value in the mine of data we’ve unknowingly built? And what responsibility do financial institutions have to safeguard and protect their users’ data?
The Data Economy: How We Gave Up on Privacy
Even for those of us who don’t fully understand the magic of data (or maybe especially for those of us who don’t), the deepening Facebook controversy reveals a huge challenge for American consumers and businesses alike. “Since the beginning of the web as we know it now, we’ve been trading some personal information in exchange for free services,” the intro to this Public Radio story says. But how do we feel about that now, as the inner workings of “surveillance capitalism” are made clearer? Would we be willing to forfeit the many benefits of living data-driven lives in exchange for a little more privacy?
Facebook’s Data Problems Have an Upside for Banks
Is there an opportunity for financial institutions in the wake of Facebook’s data scandal? Find out how Citibank is attempting to bridge the gap by offering financial guidance to anyone – even non-Citi customers. Upside: Consumers may be more likely to trust a financial institution for advice. Downside: You’re asking for data in an environment of possible mistrust.
The Dark Web’s Favorite Currency Is Not as Untraceable as It Seems
Is creating a data trail inescapable, even in the world of cryptocurrency? Ask the “discerning dark web drug dealers and pseudonymous hackers” who have turned to a digital coin called Monero, touted as a more anonymous, less traceable version of Bitcoin.
Apple Actually Cares about Users’ Data. Facebook Could Learn a Lesson
Though one could certainly argue that all of our friends at GAFA (Google, Amazon, Facebook and Apple) have played a hand in constructing the data monster that is modern digital life, Apple’s privacy policies may have actually protected its users. Specifically, while Facebook captures extensive call and text history for Android phone users, it does not have the same access to data from iPhone users.
Open Banking and the Challenge of Customer Data Privacy
Trust may be your best currency when it comes to building and maintaining relationships with your members. But how do you nurture that trust in the context of open banking? The regulations that drive data sharing in the E.U. may not apply here, but the trends behind open banking and the innovative momentum it creates certainly will. How do you ensure your members’ data privacy and engender trust?
Data and privacy are going to continue to be hot topics in the banking and credit union industries. We’ll be dedicating a significant portion of THINK 18 to helping credit unions drive growth through their data strategy. If you haven’t registered yet, join us next month at THINK 18.