As the proportion of daily life conducted online continues to climb, people are increasingly concerned by the lack of control they have over their personal data. In fact, 66% of consumers feel they will never be fully in control of their data while only 33% are aware of how many companies already have access to their details. What’s worse, only 10% have complete trust in the organisations that manage their identity data.

At its core, privacy is really about choice, trust, and giving customers autonomy over how their data is managed. Organisations need to ensure customers understand how data is collected and are given a clear opt-in or opt-out option to feel secure and respected.

Having this transparency and accountability in place will go a long way in instilling brand loyalty, long-term trust, and a positive customer experience. The primary goal should be to provide individuals with the power to determine how their information is handled. To bridge the gap between IT companies and average consumers, organisations must prioritise transparency. Whether it be an e-commerce company or a popular mobile app, customers should have a clear understanding of how their data is collected, processed, and used.

When Laws Aare Not Enough

While privacy laws play an important role in protecting the basic rights of citizens, there can still be gaps in that protection due to the rapid evolution of technologies. Since the data being collected by many companies is relatively unregulated in most cases, those companies can use, sell or share personal data without notifying the individuals involved.

That said, when robust privacy regulations are in place, individuals then feel more secure in sharing their information online. At the end of the day, customers just want to know their data is being protected and not exploited. Research shows 61% of consumers said having privacy laws enacted to protect consumer data and knowing that the website vendor is complying with those regulations makes them feel more secure when sharing their information online.

The Role of Decentralised ID Management

The theme of Data Privacy Week 2024 was ‘Take control of your data’ and it proved the perfect time to discuss the importance of decentralised identity management when it comes to keeping personal data protected. A decentralised identity management strategy can empower individuals with control of their data while reducing resource and compliance burdens for enterprises.

Decentralised identity management solutions are game changers when it comes to achieving robust data privacy. With decentralised identity, a user stores important identity data in a digital wallet on their mobile device. When it comes time to conduct a transaction, a pair of public and private keys are created to let the user share the data required to verify their identity. This allows the user’s ID to be confirmed without the risk of the details being misused.

As the concerns around data privacy issues continue to grow, decentralised identity is a strategy that can help people keep their personal information safe and secure at all times. Since users store their identity data on their own devices, they don’t have to worry about companies compiling personal data and selling or misusing it without their explicit consent, increasing privacy and convenience.

Following a decentralised identity strategy also relieves organisations from many of the heavy burdens that come with data management in today’s environment. Once a platform is operational, it helps businesses verify identities more securely and with lower costs than traditional means.

Decentralised identity management also streamlines compliance efforts and enhances operational efficiency. It’s a win for both consumers and the organisations with which they interact.

With the proportion of daily life conducted online continuing to grow, adopting a decentralised approach to identity management makes increasing sense. It allows consumers to operate digitally while at the same time being confident that their personal details will remain secure from misuse.