What Facebook can teach us about privacy

In the last few weeks, privacy and data sharing has been at the forefront of public conversation, after revelations that Facebook may have failed to protect the personal information of tens of millions of users.

The data in question was collected under a now-closed loophole that allowed users to consent to apps collecting not only their data, but also that of all of their friends.

Facebook CEO Mark Zuckerburg has since apologised with a full-page ad, but not before significant damage to the company’s reputation – not to mention its share price and his personal fortune.

The #deleteFacebook campaign that swept (ironically) social media, shows the concerns many consumers feel about who controls their data and how they use it.

Younger generations are at the forefront of the pushback, with a new study showing that 34% of Generation Z – those born from the mid-1990s – are considering quitting social media, while 64% are taking a break. Almost a quarter of respondents cited a lack of privacy as the reason.

But the bigger picture here isn’t about social media. It’s about trust in the age of mass data collection.

Brands today hold more information about their customers that any point in history. And in financial services, that data is often particularly sensitive.

So what do Facebook’s troubles mean for the sector?

Above all, we believe brands need to adopt a consumer-centric approach to how data is used, while placing a renewed emphasis on clear communication, to explain what is too often an opaque and confusing world.

Against this backdrop, the looming GDPR implementation date seems particularly timely. For financial services, who are already working hard to ensure compliance, the public reaction to Facebook’s alleged negligence shows they are on the right path.

*We believe that GDPR is an opportunity, not an obstacle, for financial services. In fact, we produced a whitepaper on that very subject – read it here. *