Consumer trust has always been important for businesses, but it has become even more crucial in the digital age. A new study by Callsign and the Centre for Economics and Business Research (CEBR) has found that a 5% increase in digital trust would result in an additional US$17 billion contribution to Singapore’s economy.
Digital trust effect on the economy
Digital trust is the faith consumers have in digital platforms, services and interactions. According to the study, there is an emerging positive “digital trust gap” of 5% in the Asia Pacific region, meaning that people generally trust the digital economy more than they trust society.
This contrasts with Western markets, with a negative digital trust gap of 4% in the US and 6% in Europe. The UK is the only market where digital and societal trust levels are the same.
The positive trust gap opens up opportunities for businesses in Singapore to capitalize on. For example, if consumers trust a digital platform enough to make a purchase, they are more likely to spend more and visit the platform more often.
“The opportunity in APAC from enhancing digital trust through digital identity is real and tangible. Consumers want and expect it to be part of their lives now. Their confidence in online experiences has improved in the last two years, which is the opposite response from consumers in Western markets,” said Callsign General Manager at APAC Namrata Jolly.
Emerging economies have the most to gain from increasing digital trust, the study claims, as they have the potential to unleash GDP per capita growth from the digital economy.
“This Callsign research reveals the value of building digital trust to the global economy and reflects the conversations and enquires we are engaging in. Organizations across the globe are looking at digital identity as the foundation of their digital ecosystem– delivering trusted interactions for consumer-to-business as well as business-to-business interactions. The research also demonstrates the negative impact if the industry doesn’t take proactive measures to address consumers’ building lack of digital trust,” says Julie Conroy, Head of Risk Insights at Aite-Novarica Group.
Singapore at forefront
Singapore has been at the forefront of driving digital trust with initiatives such as the launch of the Digital Trust Centre (DTC) – a research facility that aims to develop trust technologies and train experts in digital trust. The DTC is part of the government’s broader effort to build a Smart Nation underpinned by trust and security.
The facility, which opened in June, offers a sandbox for companies to test trust technologies that address data sharing difficulties and train 100 research and development experts in digital trust.