![Actress Scarlett Johansson and Alibaba Group chairman Jack Ma at the Singles Day online shopping.](/content/dam/images/g/s/n/k/r/q/image.related.afrArticleLead.620x350.gt3nnq.png/1480996278443.jpg)
Looking at the recent online sales figures generated from a number of global sales events such as Singles Day in China as well as Black Friday and Cyber Monday in the US and they are phenomenal.
According to a report by Adobe, online sales from Black Friday alone clicked over $US3 billion with more than $US1 billion being generated from mobile devices.
The numbers are extraordinary but what is even more impressive is the amount of data consumers generated with every sale. Financial institutions and retailers would have yielded a treasure trove of customer data ranging from spending habits to the products and experiences people are buying.
And with that data organisations can begin to better target individual consumers with better, more personalised service. But where is the "freaky line"? At what point does a tailored customer experience using personal data edge too far.
Speaking at the Smart Payments roundtable hosted by The Australian Financial Review in partnership with the Commonwealth Bank of Australia, chief executive of online invoicing company Payreq Andrew Stein said consumers do not care about data until they do care.
"When someone does or says something to you that you have never told them, then that's freaky but, we haven't been able to draw the line between freaky and cool yet – it's all about context."
He suggests that consumers will let anyone use their data if they see an organisation or institution adding value.
CBA's Executive General Manager of Cash-flow and Transaction Services Michael Eidel said data is adding value by helping connect to ecosystems. Moreover, he suggested consumers are often feeling comfortable with sharing their data with banks because there is an element of trust.
Telstra global strategy leader, thought leader and industry expert in financial technology services Rocky Scopelliti said consumers are quite willing to give up some of their data for a greater degree of personalisation and agrees trust is the starting point.
"Trust is central to the conversation so institutions need to understand that a consumer's identity, security and privacy are part of one conversation – not three separate conversations," Scopelliti says.
As for the data itself, the big question is, who owns it? In recent months, there has been much debate on whether consumers should own their own data and release it as they see fit. Some commentators have been touting blockchain technology as a way in which individual consumers can control their own data.
For Scopelliti things are a little more nuanced. He suggests most people probably think of their personal data (if they think of it all) as similar to turning on a tap and water comes out. They do not really dwell on where it is going or how it is being used.
"People just want to be empowered to control their own personal data. There's a big difference between empowering people to control their data and actual ownership and trust is absolutely central to how data is stored and a person's role in the permissions surrounding the usage of the data," Scopelliti says.
Eidel suggests there are three layers of data ownership and banks would need to make a conscious decision where they would be able and want to play. For one, the provider of the direct customer experience such as a bank or fintech company owns some proprietary data. The second layer he suggests would be the enabler of the customer experience providing a digital platform such as a smartphone or an ecommerce platform and finally, the third layer would be the provider of the underlying utility.
"For banks, the first two layers is where they would want to play actively – to shape customer experience as an enabler, and then as the owner of the direct customer experience."
And that is where banks already have a head start. According to Stein, "People trust their banks, it's the one weapon they have.
"Yes, there will obviously be winners and losers and the banks will stay in the pilot's seat as long as they offer innovative solutions."
To see more of the future of smart payment technologies, please read this report from the CBA :