Consumers should cash in on their personal data

At a time when ever larger companies seem to dominate the financial services landscape, consumers may feel they have little power to influence products they buy, the prices they pay or the value they receive. But consumers own a crucial resource that businesses increasingly want — their personal data. That potentially gives them a great deal of power — and they need to make sure they exercise that power.

Data has been previously described by the Economist as the new oil that fuels the economy in the digital age and drives success for those companies best able to refine and use it. The Economist was writing about Google, Amazon, Apple, Facebook and Microsoft. But the same is becoming true in our own financial services industry.

There is a new way of doing business here which hinges around data. Unlike oil, data is not a scarce resource globally. But, like oil, personal data is a commodity that has immense value to companies that can use it most effectively.

For companies, data is driving business strategies that can target customers more accurately, and develop and price products more successfully.

What that means for consumers is each individual’s personal information has value, in measurable, money terms. As a consumer you should not just give your data away — you need to ensure your value is recognised and you are appropriately rewarded.

Critically important is that it is your decision on how your data is used, and who owns it. You should not be prevented from accessing your own data, and you shouldn’t just be giving it up without knowing how it

will be used, for what and by whom.

Consumers who might previously have blithely given over their data to digital or financial services giants in return for “free’’ stuff such as connectivity or gym membership now need to ensure they know what’s being done with their data and they are comfortable with the value they receive.

There is a growing recognition by policymakers and regulators globally that data needs to be protected. The General

Data Protection Regulation and SA’s Protection of Personal Information Act are evidence of that, and represent important legal developments around customers’ rights to know about the collection and use of their data, and about consumer rights in being able to share their information.

Liberty recently launched a Wellness Bonus benefit, which uses clients’ wellness data from any recognised external wellness programme to assign them a Liberty Wellness score. Clients voluntarily provide Liberty with this data and, in turn, Liberty gives them benefits for living a healthy lifestyle in the form of cash bonuses.

Liberty believes customers should be able to own their personal data and use it for their benefit. This benefit puts clients at the centre and allows them to derive the maximum benefit from their efforts to live healthier lifestyles.

It is up to each and every one of us to decide whether we are getting appropriate value for our personal data. We all have the freedom to choose.

● Discovery has lodged legal action at the high court against Liberty regarding the Wellness Bonus benefit.

You need to ensure that your value is recognised and you are appropriately rewarded