Handshakes have been a sign of trust for centuries. But how does that translate to the digital world, where building trust through computers and mobile devices can be more difficult?<\/p>\n\n\n\n
As people\u2019s lives increasingly shift online, digital trust has become the key ingredient to successful business models. Some aspects of digital trust are legally required, some rely on robust technology and others derive from organizations conveying their ethical standards.<\/p>\n\n\n\n
\u201cBut most importantly,\u201d according to a 2021 Harvard Business Review report<\/a>, \u201cany economy\u2019s trust-building interventions \u2014 at both the institutional and individual level \u2014 must be proactive, forward-looking, and fine-tuned to the unique behaviors, attitudes, experiences, and environment of its digital ecosystem.\u201d<\/p>\n\n\n\n Establishing digital trust creates confidence that online interactions and transactions are safe<\/a>. Organizations build that trust by reassuring people the business is real and handles financial and personal information securely, reliably and ethically.<\/p>\n\n\n\n For some transactional relationships, strict legal requirements to Know Your Customer<\/a> (KYC) govern financial institutions and other regulated industries. They need to perform due diligence to ensure the people they do business with are who they say they are. Other regions require KYC if transactions cross a threshold.<\/p>\n\n\n\n Under other legal requirements, such as the EU\u2019s General Data Protection Regulation and the California Consumer Privacy Act, organizations must have policies and procedures for collecting and using personally identifiable information (PII data<\/a>). Some industries also have requirements around using health or credit information.<\/p>\n\n\n\n Digital trust in those cases is mandated. The information is so important that governments have created penalties around its misuse. It\u2019s a safe bet there will be more laws and regulations enforcing best practices as innovations continue to transform the digital environment.<\/p>\n\n\n\n Organizations lacking smart data security, privacy and responsibility measures can find themselves constantly scrambling to meet compliance and minimum standards. Those that understand the importance of trust in a digital world can build a competitive advantage.<\/p>\n\n\n\n PwC\u2019s 2022 Consumer Intelligence Series Survey on Trust<\/a> underscored the effects of building trust. The survey found that 71% of consumers are unlikely to buy if a company loses their trust.<\/p>\n\n\n\n Trust in the digital age is not simply between two parties. There are myriad connected devices, algorithms, data collections, third parties, cross-border transfers and innovations such as artificial intelligence, autonomous organizations and digital twins that require trust.<\/p>\n\n\n\n There are entire supply chains of interconnections that are potential sources of errors, leaks, misuse, inaccuracies, breaches and points of failure. Verifying and authenticating people and machines along the entire trust chain is imperative to protecting data, businesses and customers.<\/p>\n\n\n\n A 2022 World Economic Forum report<\/a> supported the importance of identity verification, calling identity a core component of building digital trust. Beyond identity verification, organizations can build trust in multiple ways, including:<\/p>\n\n\n\n Establishing trust as a core value, from the board to all employees, can be a valuable differentiator. Implementing effective trust frameworks now will help establish an organization as forward-thinking, responsible and a worthy partner.<\/p>\n\n\n\nLegal obligations for digital trust<\/h2>\n\n\n\n
Technical considerations for building trust online<\/h2>\n\n\n\n
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Know what information is collected and how to use, share and delete it<\/li>\n\n\n\n
Create a strategic plan around handling data<\/li>\n\n\n\n
Have the staff or outside expertise to analyze, deploy and adjust trust programs<\/li>\n\n\n\n
Understand security risks and have consistent training for all employees<\/li>\n\n\n\n
Install automation rules and transparency models to help ensure proper access and use<\/li>\n\n\n\n
Understand any potential threats posed by customers<\/li>\n\n\n\n
Implement procedures to spot suspicious activity<\/li>\n<\/ul>\n\n\n\nEstablishing responsibility, reliability and respect<\/h2>\n\n\n\n