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Estimated reading time: 5 minutes

If consumer trust were a People’s Choice Award, banking would win by a mile. shows that banking leads the trust ranking at 44%, closely followed by healthcare at 41%. On the other end of the spectrum, customers are least comfortable sharing their information with logistics companies (5%) and social media platforms (6%). 
Sharing and handling data has become a subject of trust—or a lack thereof. But what determines this trust, and why does banking, of all sectors, top the consumer trust rankings? 
 

A regulated pattern of confidence 

In the past few years, a host of high-profile data breaches have eroded consumer trust. Even if consumers are not directly impacted by a data breach, they are increasingly vigilant about how companies handle these incidents. With billions of records exposed, people are more cautious than ever. 
Regulations play a significant role in the trust equation. Industries with strict rules on data privacy and security, such as banking, typically enjoy higher consumer confidence. Regulations like GDPR, , , and the ensure businesses prioritize privacy (with significant consequences for non-compliance). Even if the average banking consumer hasn't heard of regulations like PSD2 or , they understand the banking sector is tightly regulated to safeguard their information. 
 

I trust you with my money, but do I trust you with my data? 

But here’s another consideration: people around the world depend on banks to securely store and safeguard their finances, but despite 44% of consumers expressing trust in banks, we should question why less than half of the surveyed consumers trust their bank with their data. 
This highlights the growing sensitivity around data privacy and how businesses, including banks, handle, protect, process, and share data. What can banks do to gain their customers' trust not just with their money but with their data as well? 
It's difficult to provide a straightforward answer because trust isn’t a static concept. The same study indicates that people's willingness to share personal data is affected by various factors that differ by industry. That said, employing comprehensive consent procedures that engage customers in the data conversation from the start can notably boost consumer trust in data handling. 
 

Do you really need my data? 

Consumer willingness to share data hinges on perceived necessity. The clearer the purpose, the more comfortable consumers feel about sharing their information. For instance, in sectors like banking, where personal data facilitates service access, personalized assistance, and is crucial for identity verification in payments, consumers are generally more willing to share. However, consider: does a logistics company truly need extensive customer data? 
While logistics companies may collect data for tracking purposes, customers often find data collection—beyond the necessary—intrusive. Moreover, logistics and freight forwarder companies are prime targets for fraudsters who frequently impersonate them to deceive people into disclosing personal information. 
Similarly, in sectors like entertainment and media, where data collection may be perceived as unnecessary for core services, users are often more cautious about sharing their information. And let’s not forget, the social media industry's data handling practices have come under intense scrutiny. Their business models, which heavily rely on profiling and targeted advertising based on user data, naturally raise skepticism and can impact trust levels among users. 
 

Shed light on data use 

So, with all this skepticism, data transparency is key. Industries such as financial services often prioritize transparency by clearly communicating their data collection practices, purposes, and usage policies, which enhances customer trust. 
Transparency enables consumers to make informed decisions about sharing personal data and provides them with a sense of control. Conversely, any ambiguity in data handling practices can breed suspicion and erode trust. 
This sentiment is echoed by the survey findings: a significant 87% of consumers expect basic levels of data privacy to be met. This includes being informed about data collection (55%) and more than half (53%) expressing a desire for the right to have their data erased. 
 

Trust must be earned, not assumed 

Comfort with sharing personal information varies by sector; it is influenced by regulatory frameworks, perceived necessity, transparency, and incidents of past misuse. Consumers don’t forgive, and they don’t forget. A single data breach or misuse can deeply damage trust, and empty promises and generic assurances like “we take your privacy seriously” often worsen the situation.

Because one thing is certain, trust must be earned, not assumed. 

 

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