Big data needs a big re-think: Global KPMG study

Businesses can restore trust in consumers with greater transparency

KUWAIT CITY, Feb 9: According to a study released today by KPMG International, consumers are more anxious, and although they are embracing new technology, they are more aware of the risks and benefits of handing over their data to businesses. The study includes a survey of 25,000 consumers in the UK, US, UAE, France, Brazil, Canada, China and India.

The study, published by KPMG’s Global Consumer Insights program as part of the 2018 Me, My Life, My Wallet Report, shows that almost half (47 percent) of consumers feel more anxious than last year and the same number feel more anxious than five years ago. Despite increasing anxiety and recent data scandals, three-quarters (75 percent) of consumers are still willing to provide businesses with their data.

The survey shows that a quarter of consumers (24 percent) would not trade their data; however, millennial consumers are more likely (21 percent) than their baby boomer counterparts (5 percent) to trade their data for better customer experience and personalization. Likewise a fifth (19 percent) of millennial consumers would trade their data for better products and services, versus just 8 percent of baby of data – reward consumers for sharing their data with you.

Consumers are increasingly aware of the value of their data. The research shows that 85 percent of consumers want firms to protect their information without having to ask, and 77 percent are against their data being sold on. Businesses that follow these rules are likely to fare better than the competition.

Commenting on the results, Julio J. Hernandez, Global Head of Customer Advisory, said: “Consumers are anxious, with younger generations feeling it the most. They like new technology but are concerned about handing over personal data, and what that could mean for their privacy and security. Our research demonstrates that organizations should be aware of the heightened awareness people have about the value of their data; they want to feel that they are in control at every stage of the business relationship.

Consumers ranked industries in order of trustworthiness with health care on top and advertising at the bottom:

Top three:

Healthcare providers (60 percent) Banking providers (59 percent) Technology companies (54 percent) Bottom three: Wealth management (37 percent) Government (37 percent) Advertising (26 percent) Consumers are more likely to trust firms with the data relevant to their operations. Globally, 71 percent of consumers will trust a banking provider with their financial data, but only 9 percent would trust retailers with this information. Likewise, 47 percent of consumers would trust a telecoms provider with their mobile data, but only 8 percent would trust advertisers.

The study shows that consumers are more willing to share financial data than social media or browser history data. Seventy-two percent of consumers don’t trust anyone with their social media data, 68 percent with their search history or browsing data, and 81 percent don’t trust behaviorally tracked ads; only 41 percent wouldn’t trust any type of business with their payments data.

The results of KPMG’s study demonstrate that businesses are dealing with more data-savvy consumers who want to be in control. Two-thirds (67 percent) of consumers say they can determine what information is trustworthy, and a third (30 percent) choose to disconnect from technology when they feel overwhelmed.

The study shows that two-thirds (66 percent) of consumers are interested or very interested in technology. This number jumps in the fast-growing economies of India (83 percent) and China (81 percent). Consumers in these “tech-boom” countries are more likely to shop online – 59 percent in China and 54 percent in India compared to the global average of 37 percent, and are more likely to trust businesses with their data. Ninety-one percent of consumers in China and 85 percent in India are happy to exchange their data.

Globally, 51 percent of consumers are anxious about identity theft, 48 percent about the hacking of financial, medical, or other personal info online, 46 percent about theft of credit card info when shopping online, and 38 percent unauthorized tracking of their online habits by companies, governments or criminals.

Almost half (47 percent) of consumers feel more anxious than last year and the same number feel more anxious than 5 years ago. UAE (60 percent) and Brazil (58 percent) see the highest figures, with France (37 percent), Canada (40 percent) and UK (40 percent) showing lower levels of anxiety. Younger generations are more anxious than older generations. More than half (51 percent) of Generation Y consumers feel more anxious than last year, compared to 46 percent of Generation X consumers, and 36 percent of Baby Boomers.

Donald Teale, Management Consulting Partner at KPMG in Kuwait, added: “In an increasingly complex and connected world, it is clear that the customers are becoming more sophisticated and have higher expectations from consumer business who, using customer centric strategies are constantly raising the bar. Consumer groups have different environments, tastes, and cultures, which shape their buying decisions, and shape the way they prioritize and value their time. The KPMG publication ‘Me, My Life, and My Wallet’ outlines a framework of the 5-Mys that can be used to harness customer data to understand the complex drivers that are influencing purchasing behaviour.”