A recent survey by Silence Laboratories, a deep tech company based in Singapore, sheds light on how Indians view data privacy and sharing in the financial sector. The findings reveal significant concerns and preferences among users regarding the handling of their personal data.
Financial Institutions and Data Collection
According to the survey, 72% of respondents believe that financial institutions in India collect more data than necessary. This suggests a growing apprehension about how much data is being gathered and for what purposes.
Demand for Granular Control
The survey highlights that a notable 86% of users want more precise control over their data sharing. This indicates a strong desire among individuals to manage exactly what data is shared and with whom.
Clarity and Control in Data Sharing
Interestingly, about 80% of respondents found the data-sharing notices provided by financial institutions to be clear. Additionally, 75% of those surveyed felt that they had control over the data they chose to share. This reflects some level of satisfaction with current practices but also underscores the need for further improvements.
Growing Trust in Consent Mechanisms
Trust in data-sharing practices is on the rise, particularly with the implementation of formal consent mechanisms. Approximately 71% of respondents expressed confidence in these consented data-sharing practices. This suggests that well-defined consent processes can enhance user trust in how their data is handled.
Expert Opinions on Privacy and Security
Abhishek Rathi, Program Director at Scaling Trust, emphasizes that changing societal views on privacy requires a multifaceted approach. “In a rapidly digitizing country like India, a single approach won’t work,” he explains. “We need a combination of education, technology, and policy. While education and awareness are vital, they alone cannot keep pace with India’s fast digital growth. Technologies that enhance encryption and data minimization are essential to give users better control over their data.”
Confusion and Cybercrime Concerns
The survey also points out widespread confusion between privacy, data security, and consented sharing, which is compounded by the increasing rate of cybercrimes. According to the report, over 1.14 million cybercrimes in the financial sector have resulted in losses totaling Rs 7,400 crore. This statistic highlights the pressing need for more robust data protection measures.
Call for Enhanced Cryptographic Safeguards
Jay Prakash, Co-founder and CEO at Silence Laboratories, advocates for stronger cryptographic safeguards. “We support the use of Privacy Enhancing Technologies (PETs) to ensure transparent and auditable consent,” he says. “This approach allows customers to have control over their data, with processing happening without exposing the actual data, and only inferences being exchanged. It’s crucial that what customers consent to is precisely what is extracted, supported by mathematical guarantees.”
Conclusion
Silence Laboratories’ survey, which included 200 users with experience in digital financial services in India, highlights a critical need for enhanced data privacy measures. As digital interactions continue to grow, both individuals and institutions must prioritize better control, clarity, and security in data handling practices to build trust and ensure the protection of personal information.
