Comprehensive evaluation of data privacy protection measures in digital banking platforms globally

Posted: Apr 04, 2024

• Prof. Mia Rossi
• Prof. Sofia Kimura
• Dr. Amelia Wang

Abstract

This research presents a groundbreaking methodological framework for evaluating data privacy protection measures across global digital banking platforms, introducing a novel cross-disciplinary approach that combines computational linguistics, behavioral economics, and cybersecurity assessment. Unlike traditional privacy evaluations that focus primarily on technical security measures, our methodology incorporates the often-overlooked dimension of user-perceived privacy and the linguistic transparency of privacy communications. We developed and implemented a comprehensive evaluation matrix that assesses 150 digital banking platforms across 45 countries, examining both technical safeguards and human-centric privacy factors. Our analysis reveals significant disparities in privacy protection effectiveness that correlate more strongly with regulatory philosophy and corporate transparency practices than with technological sophistication alone. The research identifies three distinct clusters of privacy protection approaches: compliance-driven, technology-centric, and user-empowerment models, each demonstrating different strengths and vulnerabilities. Particularly noteworthy is our finding that platforms employing user-empowerment models, which prioritize transparent communication and user control, achieve higher trust metrics despite sometimes implementing fewer advanced technical measures. We also discovered an unexpected inverse relationship between the complexity of privacy documentation and actual user understanding, suggesting that simplified, accessible privacy communications may be more effective than comprehensive legal documentation. The methodology introduced in this paper represents a paradigm shift in privacy evaluation by integrating quantitative security metrics with qualitative user experience factors, providing a more holistic understanding of privacy protection effectiveness in the digital banking ecosystem. Our findings challenge conventional wisdom about privacy protection priorities and offer new insights for regulators, financial institutions, and technology developers seeking to enhance data protection in an increasingly interconnected financial landscape.