What is digital trust?
Digital trust represents the general expectation that digital services, technologies and the organizations providing them can create and maintain the highest level of integrity of all digital assets including data, applications, and infrastructure.
Data has become one of the most valuable assets of the modern age, so digital trust is not only an IT imperative but also a catalyst for growth. It can ensure transparency, accessibility, security, reliability, privacy, control, and ethics.
According to a recent research conducted by McKinsey, organizations leading with digital trust are 1.6 times more likely than the global average to see earnings growth rates of at least 10%.
Building digital trust
An interdisciplinary approach that includes people, process, governance, regulation, and technology is necessary for building digital trust.
Nowadays, organizations are beginning to utilize AI-based data monitoring tools integrated throughout the network that alert security teams and block further attempts.
Also, a robust blockchain-based system can help verify data ownership, transaction details, etc. The necessary mechanisms can be embedded within a smart contract.
Organizations implement multi-layer safeguards within their networks and communication channels or utilize data trusts for secure digital information-sharing.
Under these circumstances, other organizations will likely have greater confidence in sharing sensitive data, execute payments, etc.
Guiding principles of digital trust
Digital trust-driven transformation needs a set of principles organizations must follow for maximum efficiency:
- Make digital trust a core organizational value, from executives to new hires.
- Tie security to business goals. For instance, conduct regular assessments that align business imperatives to cybersecurity controls.
- Prioritize digital trust investments and establish security budgets.
- Address the nature of change proactively.
- Conduct organizational risk assessments to identify and address talent and skill gaps.
Cybersecurity is key.
Cybersecurity is probably the most important enabler for achieving long-term digital trust.
Enforce policies at all levels of the company to drive accountability for cybersecurity and privacy.
Start with what is measurable today and create a plan to add more sophisticated metrics to determine the business impact of all security activities.
Digital trust became even more important as users now rely more on online services than they did before the pandemic.
Digital trust has a significant impact on customer behavior, brand reputation, and customer loyalty.
The Customer Perspective
When customers trust a business, they feel comfortable sharing sensitive information, utilizing online services or making purchases. Strong data protection measures will encourage customers to engage in digital marketing and personalized services. Overall, digital trust plays an important role in modeling consumer behavior, including their willingness to share personal information.
The Brand Reputation Perspective
Reputation is incredibly important for any organization and digital trust can affect how people perceive a brand. If an organization at some point discloses a security or data management issue, it will harm the brand’s reputation and make customers less likely to trust it. However, if it prioritizes digital trust and applies strong security measures, it can enhance its reputation which will help the organization become an industry authority.
Unfortunately, organizations that don’t foster digital trust risk losing customers and missing out on growth opportunities.
Final Thoughts
Technology alone can’t build long-term trust.
Digital trust involves establishing a strong online reputation, transparency, and providing an exceptional customer experience. This includes being transparent about how customer data is collected and utilized, implementing security measures to protect against incidents, while ensuring that all online operations can be performed quickly and seamlessly.
