The charity sector is rallying towards self-regulation as the alternative to a government crackdown in the aftermath of the media coverage of the sale of pensioners’ personal information.

Two shocking stories have emerged in the last few weeks about two pensioners, Olive Cooke, a 92 year old who was allegedly hounded to death by cold callers and Mr. Rae, an 87 year old dementia sufferer who was conned out of £35,000 by scammers after his personal information was sold on by charities 200 times.

What’s surprising perhaps is that these are analogue examples of information mis-use in a world where personal information collection and activation has tipped over into the digital realm. The outcome for the fund raisers and marketers involved is the same: Reputational brand damage from exploitation of personal information.

With people’s lives moving from offline to online and becoming more digital, the issue of personal information and privacy have become the main sources of friction between everyday users of smart technology and digital service providers.

In this great tug of war, key figures have set out their stalls. Facebook CEO, Mark Zuckerberg has openly stated that privacy is dead. This view is clearly prevalent amongst many Silicon Valley organisations, who base business models on the collection and trading of personal information in the digital marketplace.

Others haven’t been as receptive to the ease at which big tech companies collect, store and manage customer information for business bottom line. The most vocal of these being Apple CEO, Tim Cook, who has openly attacked rivals on their attempts to monetise customer data for advertising purposes. Tim Cook isn’t a lone warrior in this aspect. Increasingly, consumers are wary of handing over their personal information to businesses with regulators not far behind.

Individuals increasingly know the value of their information and are very aware of its value to businesses. Research has found that if individuals perceive a clear and desired benefit, sensitivities towards sharing personal information diminish. Personalisation is key in this transaction. If an individual willingly provides their personal details and shares their behaviours online, they fully expect the services offered to be unique to them.

Our industry is already reacting to such trends with a range of new devices, apps and smart tech. New services are emerging, designed to make individuals’ lives in the digital sphere easier and remove the bear traps of an increasingly digitalised world for ordinary people, who like Mr. Rae, forget to tick opt-out boxes with terrifying consequences.

The growing investor interest in digital life management services is testament to this. With an increasingly connected world and explosion of smart devices, platforms that assist users in how they manage their daily occurrences and interactions will be the new consumer champions. Seamlessly integrating offline behaviour with their online presence, life management platforms ensure that technology works harder by using the personal information provided to enhance their experiences. The concept is not a new: for example, PruHealth’s Vitality platform rewards users for healthier eating and exercising goals and the new Waitrose loyalty scheme offers its members discounts on their 20 personal favourite items.

As we gradually move into an age of Internet of Things, the platforms linking the apps, services and devices we use will become the lynchpin in ensuring consumers get the most of the personal information they share. We already have various devices or apps that help us manage our finances, health, sleep patterns, travel and leisure activities and by connecting all of these together, life management platforms get an holistic view, keeping all the information not only secure but in the hands of the consumer themselves.

Soon individuals will become the key decision makers on how their information is shared, used and will have ultimate control over ownership. Emphasis will be placed on quality of information rather than volume as providers and individuals alike seek to maximise a new type of ROI- return on information.

While regulators worry about how to deal with consumer disapproval of personal information mining, technology innovators are solving these problems already. Platform companies like Uber and Airbnb have demonstrated that you don’t need to own cars to be in the taxi business, or hotels to be in the hospitality business. Magpie is from that same mould, as we are in the business of managing personal information without owning any data.

The message to the charity sector is to fundamentally rethink their approach to individuals and how they relate to them. Even with the most stringent regulation, what has worked in the past will not work in this new future unless there is a tangible benefit to the individual in agreeing to share their personal information.

 

By Stephen Kennedy, Founder and CEO at Magpie. 

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