It’s all digital and a little bit dangerous…
The pandemic created a crush in data and people moving to online platforms, and now in 2024, two years after its end, there’s no sign of people giving up the digital alternatives they’ve become accommodated to.
Over 90% of financial transactions now occur online, with the average consumer engaging in two digital transactions daily. This volume of online activity has led to a surge of the Personally Identifiable Information (PII) traveling the internet and an equal increase of threat actors looking to capitalize on the opportunity to profit from this data.
The importance of secure online technology, like input masking, malware file scanning, and encrypted traffic cannot be overstated, especially in the financial services (finserv) sector where data security is held to higher standards.
What do forms have to do with it?
Consumers have become aware of the value of their data and are more discerning than ever about what sites they are comfortable entering personal information on. Forms are the gateway between the potential customer and your organization. It’s where the decision point happens that a person decides, “Do I trust this company or not?”
This blog looks at what people need from an organization’s web forms and website to feel secure about their interactions, and tips on how an organization can get there.
Indicators of trust
When a consumer considers doing business with an organization, they decide within 30 seconds of being on their website whether an organization is trustworthy or not. These are are some of the indicators they look for before ever clicking into a form.
Security Icons
Consumers look for visible security indicators on forms, such as SSL encryption, padlock icons, green check boxes that signal data protection. Online forms serve as the interface and first point of contact between customers or prospects and an institution and seeing credentials up front goes a long way towards establishing trust.
Trust Signals and Certifications
Trust badges on the home page, certifications, a dedicated security and compliance page, and affiliations with reputable security organizations or industry standards (such as GDPR, GLBA, PCI DSS) all serve as trust signals for consumers. These endorsements validate the organization’s commitment to data protection and compliance with regulatory standards.
User Control and Consent
Consumers value autonomy over their data and expect organizations to provide options for data consent and control. This includes the ability to manage privacy settings, opt-in or opt-out of data sharing, and access or delete personal information upon request. The cookie info should be front and center letting consumers know how their data is being used. People want transparency with privacy policies. Transparent privacy policies that outline how the organization collects, uses, and protects consumer data are essential. Consumers want clear information around data retention practices, third-party sharing, and opt-out options so they can make informed decisions about sharing their information.
Reputation and Reviews
A positive reputation and feedback from other consumers play a significant role in building trust. Consumers often seek out reviews, ratings, and testimonials from peers to gauge the organization’s credibility and reliability in handling sensitive data. Having a review section directly embedded on your site makes it easy for consumers to do their research without needed to click off your page.
Designing forms for trustworthiness
In addition to visible security features like security icons and easily accessible website information on trust… the form design itself can indicates whether an organization is trustworthy. Inconsistent styling, grammar errors, and form functionality problems give off immediate red flags. If an organization can’t put up a decent web form, how likely will they be to invest in data security?
Online forms must prioritize simplicity, clarity, and security. Design elements like clear instructions, intuitive layouts, and seamless branding reinforce consumer trust that their data is being handled appropriately.
Tips for building trust with online forms
- Keep it Simple: Simplify form fields and minimize required information to reduce friction and enhance user experience.
- Highlight Security Features: Display trust badges, SSL certificates, and privacy policies prominently to reassure users of data protection measures.
- Offer Data Control: Allow users to manage their data preferences, including consent settings and opt-out options.
- Regular Audits and Updates: Conduct regular security audits and updates to ensure compliance with industry standards and mitigate emerging threats.
- Educate Users: Provide clear guidance on data security best practices and how users can protect themselves online.
What is an organization’s responsibility to consumer’s with their data collection?
Financial institutions have an ethical obligation as data stewards to prioritize consumer trust and data protection. But they are also legally liable to uphold certain behaviors depending on the type of data they touch and the industry regulations and compliance requirements their organization are incumbent to.
Many regulatory standards around data processing and collection have overlaps in requirements that make it easier to add additional compliance certifications after the first.
Here’s a simplified table outlining compliance regulations in the financial services industry where they apply and where you can consolidate your efforts:
| Regulation | Description | Applicability | Sectors other than FinServ | Regulation Overlap | More Information |
|---|---|---|---|---|---|
| GDPR (General Data Protection Regulation) | European Union regulation on data protection and privacy for individuals within the EU and EEA. | Applies to organizations processing personal data of EU residents. | Overlaps with businesses collecting personal data globally. | GDPR has overlaps with CCPA. | Learn More |
| PCI DSS (Payment Card Industry Data Security Standard) | Security standard for organizations that handle branded credit cards from the major card schemes. | Applicable to entities that store, process, or transmit cardholder data. | Overlaps with any organization that handles payment card information. | PCI DSS has overlaps with GDPR. | Learn More |
| GLBA (Gramm-Leach-Bliley Act) | U.S. law that requires financial institutions to explain how they share and protect customers’ private information. | Applies to financial institutions. | Overlaps with organizations handling financial data. | GLBA has overlaps with SOX. | Learn More |
| CCPA (California Consumer Privacy Act) | California law that enhances privacy rights and consumer protection for residents of California. | Applies to businesses that meet certain criteria and collect personal information of California residents. | Overlaps with businesses collecting personal data of California residents. | CCPA has overlaps with GDPR. | Learn More |
| SOX (Sarbanes-Oxley Act) | U.S. law that sets requirements for financial reporting and auditing of public companies. | Applies to publicly traded companies. | Overlaps with publicly traded companies. | SOX has overlaps with GLBA. | Learn More |
Conclusion
Online forms play a pivotal role in shaping consumer trust in the FinTech sector (and really everywhere else). By prioritizing security, simplicity, and transparency in form design, organizations can build trust and credibility among their customer base. Start building trust with your online forms today with FormAssembly.
Want to learn more about best practices for FinServ data collection? Check out our ebook “Making the Right Investment: 11 Ways to Mitigate Data Collection Risks in Financial Services.“
