Study: Hongkongers don't accept companies using their data to improve services

Hongkongers were likely to stop doing business with an organisation that had lost or misused their data and did not believe it was acceptable for businesses to use any type of personal data to improve services, with only a handful of them knowing that their personal data had been misused by an organisation, according to a dentsu international study.

Drawing on a survey of 32,000 people across 22 markets, dentsu international's latest report, “Decoding Data Dynamics: Digital Society Index 2020” indicated that consumer attitudes about personal data can be hard to decode. Analysing more than 1,000 Hong Kong-based respondents, the report was part of the Digital Society Index study, conducted at the height of the COVID-19 pandemic.

The report has shown that respondents did not believe it was acceptable for businesses to use any type of personal data to improve their services, from internet browsing (32%) to even the most basic forms of personal data, such as email addresses (44%), level of education (42%) and location (32%).

However, at the same time, many people shared a wide array of personal data without knowing they were doing so and felt they had little power to do anything about it. In Hong Kong, 49% of consumers were willing to pay for products and services through facial recognition or fingerprint tech. In terms of improving services, meanwhile, only 8% of consumers thought it was acceptable for businesses to use their biometric data.

While customers are becoming aware of the how their data is used, they are giving a number of clear signals about the future of the personal data landscape. Eight out of 10 global respondents said they would stop doing business with an organisation that had lost or misused their data. This pattern was consistent across all the markets, with Hong Kong sitting at 78%, one percentage point higher than the global average. 

People aged 18 to 34 were more likely to take action than older demographics. Half of Gen Z (50%) said that they had taken steps to reduce the amount of data they had shared online, compared to a third for people aged between 45 to 65 years old. A similar trend was also discovered in ad-blocking software usage.

Although the respondents were aware of how their data had been used and had taken steps to manage it, 45% of Hongkongers had not taken any actions. Only 11% of them knew that their personal data had been misused by an organisation, and only 8% had lodged complaints to an organisation regarding the use of their personal data.

But the challenge is that with many services requiring data sharing to secure access, consumers deciding to share less could mean receiving an inferior or limited service.

When it comes to the use of personal data in the future, more than a third (36%) of people in Hong Kong expect to receive financial benefits in exchange for organisations using their data in the next two to three years, relatively behind the global average of 44%. Currently, only 13% of Hongkongers claim to have sold their personal data over the last 12 months.

Nearly half (49%) of the respondents said they had expected to pay for products and services using facial recognition or fingerprint technology, while less than a quarter (22%) had had no intention to do so. More males (53%) had such intention than females (45%).

Lastly, government agencies (43%) and utilities companies (35%) were the most trusted sectors who used people's data, followed by airlines or travel companies (34%). Technology companies were in the middle sitting at 26%, and at the other end of the spectrum, media and entertainment companies were the least trusted at 16%.

“People in Hong Kong are embracing digital technology as an enabler of a healthier and more connected life. Brands need to reassess how they build relationships with this cohort in a way that places a premium on transparency, empowerment and a clear value exchange when using consumer data," said Pauline Chu, CEO of Dentsu Aegis Network Hong Kong. 

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