Qlik: Over half of Singapore consumers don’t trust technology for big decisions

Source: Qlik infographic. More than half of Singapore consumers decide based on emotions, experiences and intuition, rather than data and technology.

Singapore consumers don’t trust data and technology when it comes to making meaningful decisions that have a significant, long-term impact on their lives, according to new research* from Qlik conducted by YouGov.

More than half (56%) tend to make decisions based on their emotions, experiences and intuition, as opposed to factual data and technology. As the latter becomes more ingrained into our lives, overcoming this trust gap represents a challenge for companies providing data-informed or AI-powered apps and services to consumers.

As consumers navigate restrictions on movements and gatherings due to the spread of the new coronavirus (COVID-19), millions are forced to work from home and rely more on digital connectivity. Yet, Singapore consumers’ trust in data and technology is limited to making decisions which aid in convenience but have a smaller impact on their lives. This includes letting technology pick the fastest route to a destination (81%), booking a movie ticket based on preferences (67%) or generating a travel itinerary for the next vacation based on previous travel experiences (55%).

Singapore consumers trust other people more than data and technology when it comes to making bigger decisions that have a significant impact on their lives, such as choosing who they should date (77%), advising them on their next career step (65%) or motivating them to exercise (54%).

This trust gap continues to widen with Generation Z. More than half (51%) are wary of devices, websites and apps collecting data or personal information about them in return for convenience and productivity. This number is higher compared to Millennials (42%) and Generation X (48%), but lower than Baby Boomers (56%). One in five Generation Z consumers (20% vs Millennials at 14%) also believe that data and technology are not accurate in general.

“Each generation relies on and trusts data and technology more than the previous one,” said Suganthi Shivkumar, MD, ASEAN, India and Korea, Qlik.

“Surprisingly, Generation Z bucks this trend, putting them more in line with older Baby Boomers. This could be a sign of tech fatigue or a more pessimistic view towards technology in general. Generation Z are digital natives, meaning they’ve been raised with computers and on the Internet. More experience with digital connectivity could make them less charmed by the novelty and more wary of its potential consequences.”

The research identified privacy and security concerns as the main reasons for this trust gap. Two-thirds of all respondents (67%) are concerned that their data and information might be disclosed to the public, and almost as many (61%) fear that they have no control over what data or information is collected from them. Interestingly, almost half (46%) are concerned about losing the human connection, as data and technology might cause them to interact less with people around them.

When asked for the reasons for trusting data and technology, almost three-quarters of consumers (73%) state that it helps them save time, while just under two-thirds (63%) believe it keeps them more informed. Almost half believe data and technology helps them to solve problems (45%) and make better decisions (44%).

If trust issues can be resolved, the impact of data and technology on consumers’ lives could be more meaningful. In the next five years, almost half (48%) would allow integrated body sensors to measure their vitals and inform their doctor about any abnormalities. More than a third (35%) would permit an app to limit or prioritise spending based on their savings plan, while just under a third (30%) would allow data and technology to secure their next job.

Suganthi Shivkumar added: “The fast-paced integration of data and technology into our lives presents lots of opportunities for apps and services to provide consumers with data-informed insights that make their lives more convenient, exciting and simply better. The incorporation of artificial intelligence (AI) will further intensify this. But only when companies start to remove the ‘black box approach to AI’ and show consumers what data is collected and how it is used to make recommendations, will they trust data more when making higher-impact decisions.”

*All figures, unless otherwise stated, are from YouGov Singapore. The total sample size was 1,052 adults. Field work was undertaken between 5 and 6 December 2019 via a survey carried out online. The figures have been weighted and are representative of all Singapore adults (aged 18+) nationally.

Asia Pacific consumers worry more about computer data than mobile payment data

Consumers in Asia Pacific are more concerned with protecting their financial and payments information stored on a computer than they are with protecting the same information when it is stored on a mobile wallet, according to new benchmark data*, Global Consumer Survey: Consumer Trust and Security Perceptions, from ACI Worldwide and the Aite Group.

The global fraud study of more than 6,000 consumers across 20 countries revealed that only 46% of global consumers in Asia Pacific trust businesses, including restaurants and merchants, to protect their financial data. In the other hand around 80% of consumers generally believe their mobile wallet data is secure.

As payments are increasingly shifting to mobile devices and global fraud continues to rise, consumers must be vigilant about mobile fraud protection. Across the globe, consumers are adapting to technology advancements—including the ubiquity of mobile wallets and a continued shift to online shopping, but are also acquiring unbalanced perceptions around payments data security.

Principal findings amongst Asia Pacific respondents include:

· Only 46% of consumers trust businesses (e.g., stores, online shopping sites, restaurants) to protect their financial and payments data. The numbers are 47% in Indonesia, 36% in Singapore, 40% in Australia, and 42% in New Zealand. India (60%) and Thailand (51%) are the only countries where there is at least 50% confidence in stored data being well-protected.

· Around 80% of consumers report they feel at least somewhat secure with mobile wallets. India is a standout, with over 90% of consumers reporting they feel at least somewhat secure.

· Across the region, the clear fraud concern is theft by computer hacking (37% in Indonesia, 33% in India, 31% in Thailand).

· After experiencing fraud or a data breach, the majority of consumers indicated they would stop shopping with a given merchant. The numbers reached 76% in Indonesia, 73% in India, and 65% in Singapore.

· Even though many institutions have some form of anti-fraud education and training, it does not seem to resonate with all consumers: Singapore, Australia, and New Zealand showed much lower levels of awareness of anti-fraud messages, with under 50% of respondents in each country reporting that they have seen some sort of anti-fraud education for 2016.

· The majority of consumers are very interested in receiving a call or SMS message on their mobile device to help mitigate fraud.

“This data is a further wakeup call to the broader payments industry, including merchants, banks and financial intermediaries, that we must proactively educate consumers about security measures that are in place—to allay consumer concerns, which will not only result in enhanced customer experiences, but also help to reduce fraud losses,” said Andreas Suma, VP and global lead, fraud and data, ACI Worldwide.

“Moreover, consumers must become more proactive in securing their personal data by using the fraud prevention measures and services offered by their financial institutions.”

“Our research shows that consumers want to proactively manage fraud, particularly by leveraging mobile technology – whether it’s text or talk,” said Shirley Inscoe, Senior Analyst, Aite Group. “This willingness opens opportunities for financial institutions to optimise the ways in which they reach out and communicate with consumers, ultimately improving the customer experience while reducing operational costs and fraud losses.”

Interested?

Read the report

*ACI Worldwide onducted online quantitative market research in April 2016 and surveyed 6,035 consumers. The study was conducted in a total of 20 countries in the following regions:

The Americas: Brazil, Canada, Mexico, and the US

EMEA: France, Germany, Italy, the Netherlands, South Africa, Sweden, the
UAE, and the UK

APAC region: Australia, India, Indonesia, New Zealand, and Singapore

China, Russia, and Poland were removed compared to 2014, while Spain, Thailand, and Hungary were added for 2016.

In total, 6,035 consumers were included in the research—approximately 300 consumers, divided equally between men and women, participated in each of the 20 countries. Of the total, 5,861 own one or more type of payment card—credit card, debit card, or prepaid card.

This is the fourth time that ACI has fielded this type of survey, and some comparative results are included from 2012 and 2014. In each country, the data have a margin of error of approximately five points. Statistical tests of significance, where shown, were conducted at the 95% level of confidence.

Security breaches have serious repercussions for customer loyalty

Source: Gemalto infographic. Consumers are willing to take legal action against companies which suffer security breaches of consumer data.

Nearly two-thirds (64%) of consumers worldwide say they are unlikely to shop or do business again with a company that had experienced a breach where financial information was stole​n, and almost half (49%) had the same opinion when it came to data breaches where personal information was stolen. This is according to a recent global survey* by Gemalto. a digital security provider, titled Broken Trust: 'Tis the Season to Be Wary, which surveyed 5,750 consumers in Australia, Brazil, France, Germany, Japan, the UK and the US.

Six in 10 people surveyed (59%) believe that threats to their personal information increases during the festive season, while two in 10 (18%) believe that they are likely to be a victim of a breach during the holiday season.

A quarter of all respondents feel that companies take the protection and security of customer data very seriously. More than twice as many respondents feel that the responsibility of protecting and securing customer data falls on the company (69%) versus the customer (31%). Of the employed respondents, only around two fifths (38%) feel that their employer takes the protection and security of employee data very seriously.

The survey revealed that 31% of respondents have already been affected by data breach in the past. Around four in 10 state the most likely causes for being a victim of a breach are visiting a fraudulent website (42%), phishing attacks (40%) or clicking a fraudulent web link (37%). The emotional impact of data breaches has also created apprehensive feelings towards businesses with nearly one fifth surveyed (19%) feeling they are likely to be a victim of one within twelve months to three years.

Ninety percent of surveyed consumers feel that there are apps and websites that pose significant risks to the protection and security of their personal information. Fifty-five percent believe that social media sites expose them to the greatest risk, and around two in five respondents believe adult content and torrent apps/websites carry the greatest risk to the security of personal information.

Around a quarter (23%) of respondents who have been a victim of a data breach, either have, or would, consider taking legal action against the breached company involved in exposing their personal information. Almost half (49%) of respondents said they would take or would consider taking legal action against any of the parties involved in exposing their personal information.

However, the consumer may also be at fault. The survey also found that more than half (54%) of respondents are using the same password for all or some of their online accounts. Of the respondents who actively use social media accounts, only a quarter (25%) use two-factor authentication to secure all of their social media accounts.

Of the respondents who actively use online/mobile banking, around six in 10 (58%) say that all of their banks use two-factor authentication to secure their Internet banking. This is not as widespread amongst retailers, however. Of the respondents who actively use online retail accounts, just a quarter state that all of the online retail apps/websites they use require two-factor authentication to secure online transactions.

"The media coverage of massive data breaches has done little to instil consumers' confidence in how well companies, big and small, are protecting their data," said Jason Hart, Vice President and Chief Technology Officer for Data Protection at Gemalto. "The fact that employees don't even feel that their employers are taking the protection of their personal data security very seriously rings alarm bells. Either companies need to increase their security measures or, assuming that they already have these in place, they need to communicate this to their customers."

Source: Gemalto infographic. The websites which pose the greatest threat to customer data theft.

"As companies collect ever-increasing amounts of customer data and as our digital interactions become more diverse, more data about what we do, who we are and what we like is being stored online," continued Hart. "The survey proves that the traditional data security mindset needs to evolve, this goes for companies and consumer adoption of advanced security measures like two-factor authentication. Otherwise, an increasing numbers of consumers will cut ties with companies who aren't taking data protection seriously, and take their business to someone they can trust."

Interested?

Read the Customer Loy​alty and Data Breach Report
View the complete infographic​​

*Independent technology market research specialist Vanson Bourne was commissioned by Gemalto to undertake the research, for which 5,750 consumers were interviewed during October and November 2015. Seven hundred and fifty interviews were conducted in each of the following countries: UK, Australia, Japan, France and Germany, and 1,500 interviews in the US, plus 500 in Brazil. To qualify for the study, consumers had to actively use online/mobile banking, social media accounts or online retail accounts.​​

Asia Pacific less likely to forgive companies suffering data breaches

Data breaches have a significant impact on whether a customer will interact with an organisation again, according to new research from SafeNet. The global research*, which included respondents from Japan and Australia found that nearly two-thirds (65%) of respondents would never, or were very unlikely to, shop or do business again with a company that had experienced a data breach where financial data (credit card information, bank account number, or associated login details) was stolen.

According to the findings of the Q2 Breach Level Index, a total of 237 data breaches occurred this year between April and June 2014**, exposing more than 175 million records worldwide. The survey results illustrate the impact that data breaches can have on customer loyalty and corporate revenue. Data breaches involving personal identifiable information were deemed to be slightly less harmful to an organisation than breaches involving financial data, with just over half (57%) suggesting they would never, or were very unlikely to, shop or do business again with a company that had experienced a data breach of this nature.

Japanese and Australian consumers take data breaches more seriously than those in other countries. While 54% of US respondents said they would never, or were very unlikely to, shop or do business again with a company that had experienced a data breach where financial data was stolen, 82% of Japanese consumers said the same thing, the largest percentage, while Australia was second-highest with 72% of Australian consumers agreeing.

"Data breaches are not just breaches of security. They're also breaches of trust between companies and their customers, and can result in not only negative publicity but lost business, lawsuits, and fines that can threaten the viability of the business. For organisations that fail to address their security vulnerabilities, the problem is only going to get worse as stricter regulations governing the reporting of data breaches are introduced across the world, making breaches more visible to the public. So companies need to do all that they can to keep customer data protected," said Tsion Gonen, Chief Strategy Officer, SafeNet.

The research also indicated that only half of adults surveyed feel that companies take the protection and security of customer data seriously enough - a sentiment that's likely to have been influenced by the high volume of data breaches in 2014. During the second quarter alone, data breaches have hit many well-known companies, including eBay and Spotify, with more than 175 million customer records of personal and financial information compromised worldwide. 

"With the increasing frequency and size of data breaches, it's clear that being breached is inevitable and perhaps only a matter of time. Cybercriminals are going after easier targets, and that is frequently personal data that is often unencrypted. With the implications clear, it's time for companies to start thinking about protecting more of that data with strong encryption and multi-factor authentication. 

"Only those organisations that adopt a 'secure breach' approach and ensure that all customer data remains encrypted will find themselves able to retain their customers should a data breach occur," Gonen concluded.

Read more about the Customer Sentiment Survey here and the Breach Level Index Executive Summary here. 

*The research from SafeNet polled 4,559 adults across the US, UK, Germany, Japan, and Australia, and was carried out between June 27 and July 4, 2014. Respondents consisted of adults who use the Internet.

**SafeNet Breach Level Index