Digital trust low among companies worldwide: Report

Many companies are not confident in their digital trust, according to a new report published on Tuesday, by ISACA (Information Systems Audit and Control Association), an Illinois-based global community of digital trust professionals, which explains digital trust as the confidence companies have in their stakeholders (employees, customers and partners etc.), technology and processes to create a secure digital world. 

The study, which polled over 8,000 professionals globally, including 537 from India, however showed huge gaps in areas like leadership support and staff skills and training that are deterring digital trust among brands and their customers and other stakeholders. For example, a lack of training (49%) and alignment on digital trust and enterprise goals (47%) continue to be the biggest barriers to digital trust.  Other reasons such as, lack of technological resources (45%), lack of leadership (42%), insufficient processes or governance practices (39%) and digital trust not being treated as a priority (37%) were also seen as obstacle by professionals.

According to ISACA, organizations with high levels of digital trust can gain tangible benefits in terms of positive reputation (64%). stronger customer loyalty (62%), more reliable data on which to make decisions (56%), fewer privacy breaches (55%) and cybersecurity incidents (54%) and the ability to innovate faster because of the confidence in their technology and systems (51%). All these also lead to higher revenue (36%), it said. 

R V Raghu, ISACA Ambassador in India said that with most businesses now operating via digital platforms, instilling and safeguarding digital trust is becoming critical… “It is about creating a better, safer digital world for everyone,” he said. 

The study however showed that despite acknowledging the importance of digital trust, only 24% have a dedicated digital trust staff role and only 36% say their board of directors has prioritized digital trust. What’s more over one-thirds (34%) of the organisations do not have a specialist like a Chief Trust Officer, or Director of Digital Trust to drive these initiatives.  

“As organizations move to a digital-first business model, trust is the essential component that must be earned before, during, and after every interaction,” said Tracey Dedrick, Interim CEO of ISACA. “A digital trust framework that is aligned with enterprise goals is essential and can contribute to impactful positive outcomes,” said Dedrick, adding that “it is critical that boards and the C-suite work closely in ensuring to make it a top priority”.  

The study however sees an improvement in the lack of skills and training over the previous year’s survey, published in September 2022 that indicates a gradually increased understanding of the value of digital trust. In 2023, 45% offer digital trust training to staff (43% in 2022), and 72% say digital trust is extremely or very relevant to their job (66% in 2022). 

To be sure, another survey report by U.S-based consultancy firm McKinsey & Company published in September last year that polled more than 1,300 business leaders and 3,000 consumers globally suggests that establishing trust in products and experiences that leverage AI, digital technologies, and data not only meets consumer expectations but also could promote growth.  

Much like the ISACA study, the research indicated that organizations that are best positioned to build digital trust are also more likely than others to see annual growth rates of at least 10% on their top and bottom lines, even though that’s only a small contingent of companies. For example, organizations that exhibited confidence to protect consumer data, enact effective cybersecurity, offer trustworthy AI-powered products and services, and provide transparency around AI and data usage, are set to benefit in the long run.