A recent BIS survey reveals that Americans have a greater trust in traditional banks compared to government agencies, fintech companies, and especially Big Tech firms, when it comes to the protection of their personal data.
The survey, which included approximately 1,300 heads of US households, asked participants to rate their trust in different sectors on a scale from one (no trust) to seven (complete trust) regarding the safeguarding of various types of data, including bank transaction history, geolocation, and social media information.
Big Tech companies—such as Google, Amazon, Facebook, and Apple—received a median trust score of two, with about 75% of respondents scoring them between one and three. In contrast, government agencies and fintechs like PayPal averaged a trust score of four, with a wider range of responses than that for Big Tech.
Traditional banks scored better, with a median trust level of five. More than 75% of respondents rated banks at least a four, and over 25% assigned them a score of six or higher.
Demographic differences were noted in the survey results. Respondents from racial minority groups expressed lower levels of trust in financial institutions, while younger individuals tended to place greater trust in fintech services. Additionally, female, minority, and younger respondents showed heightened concerns regarding the implications of data-sharing on their personal safety.
The impact of Covid-19 was also significant, with a quarter of respondents indicating that the pandemic made them less willing to share personal data. In this group, nearly half reported increased reluctance to share data with Big Tech, citing fears of identity theft and misuse of information.
The BIS suggests that the accelerated digital transition during the pandemic could “impose disproportionate harms on some groups, potentially affecting digital adoption rates.”
The report concludes by emphasizing the importance of understanding and addressing these concerns through thoughtful regulation, which is vital for ensuring that digital technologies can be used safely and inclusively across society.