The Bankwatch

Tracking the consumer evolution of financial services

Dynamic Privacy, protection of ‘my data’, Friend Connect | what is all the fuss about?

There is much debate on the topic of protection of personal data, with a sub text on monetising your data. What are the issues? Here is an attempt to break out the core issues for you to consider.

Marc’s Voice » Blog Archive » How SHOULD dynamic privacy work?

By that I mean – clearly Facebook wants to keep their user’s data in their system, but they have to answer all our demands for allowing user’s to move their data or at least access their data – from remote locations.

Scoble – Mike Arrington is right – FaceBook is wrong
Arrington – Data portability – its the new walled garden

The one common attribute they all share is that the issue is not clearly outlined. Here are some facts, and background from what I see.

What is “your data” that they are discussing?

  1. personal information; name, address, phone, email, other contact data
  2. friends contact information; your address book in essence, and whatever contact information you have there
  3. your buying habits, your opinions, your views
  4. your friends habits, your opinions, your views

Where is your data?
This is where it gets interesting – given the above definition, your data is obviously in many places:

  • web mail (gmail, yahoo mail, etc)
  • your computer – Microsoft Outlook, Evolution, Mac email, etc
  • your social network – Facebook, Mebo, Hi5 etc.
  • your online merchants – Banks, ecommerce sites (plus a host of offline day to day merchants, telco’s, electricity providers, etc etc etc)

What are the big company’s doing and why?
Facebook – Connect
Google – Friend Connect
Yahoo – Mesh

At one level, they are all attempting basically the same thing – attempting to find ways to have access to as much data as possible, especially 2, and 4 above, and matching that to 1, and 3. The underlying assumption is that if your friends choose something this increases the likelihood that you will adopt the same preferences.

In short all this “social media” effort by the big guys is an attempt to automate methods of advertising to you in a more meaningful way. This represents the crux of the matter – the perceived value of your data and how that will translate into meaningful advertising, and sales.

Other company’s
This is the more controversial of social media marketing.

These company’s have plans to use the data above, watch it as people browse, and offer up insights to advertisers that they can base their advertsing upon.

There we are – some things that are going on, that I think is worth watching.

Relevance to Bankwatch:
This in its infancy and is mainly being debated amongst the geeks at the moment. But it is something to watch, and will be on us before we know it.  Banks need a position, and will have some tough decisions to make.

Written by Colin Henderson

May 17, 2008 at 17:28

Posted in Marketing

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