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• What Is Data Ethics & Why Is It Important in Business ?

  9 mai 2024, par Erin

  Data is powerful — every business on earth uses data. But some are leveraging it more than others.

  The problem ?

  Not all businesses are using data ethically.

  You need to collect, store, and analyse data to grow your business. But, if you aren’t careful, you could be crossing the line with your data usage into unethical territories.

  In a society where data is more valuable than ever, it’s crucial you perform ethical practices.

  In this article, we break down what data ethics is, why it’s important in business and how you can implement proper data ethics to ensure you stay compliant while growing your business.

  What is data ethics ?

  Data ethics are how a business collects, protects and uses data.

  It’s one field of ethics focused on organisations’ moral obligation to collect, track, analyse and interpret data correctly.

  

  Data ethics analyses multiple ways we use data :

  • Collecting data
  • Generating data
  • Tracking data
  • Analysing data
  • Interpreting data
  • Implementing activities based on data

  Data ethics is a field that asks, “Is this right or wrong ?”

  And it also asks, “Can we use data for good ?”

  If businesses use data unethically, they could get into serious hot water with their customers and even with the law.

  You need to use data to ensure you grow your business to the best of your ability. But, to maintain a clean slate in the eyes of your customers and authorities, you need to ensure you have strong data ethics.

  Why you need to follow data ethics principles

  In 2018, hackers broke into British Airways’ website by inserting harmful code, leading website visitors to a fraudulent site. 

  The result ? 

  British Airways customers gave their information to the hackers without realising it : credit cards, personal information, login information, addresses and more.

  While this was a malicious attack, the reality is that data is an integral part of everyday life. Businesses need to do everything they can to protect their customers’ data and use it ethically.

  Data ethics is crucial to understand as it sets the standard for what’s right and wrong for businesses. Without a clear grasp of data ethics, companies will willingly or neglectfully misuse data.

  With a firm foundation of data ethics, businesses worldwide can make a collective effort to function smoothly, protect their customers, and, of course, protect their own reputation. 

  3 benefits of leaning into data ethics

  We’re currently transitioning to a new world led by artificial intelligence.

  While AI presents endless opportunities for innovation in the business world, there are also countless risks at play, and it’s never been more important to develop trust with your customers and stakeholders.

  With an influx of data being created and tracked daily, you need to ensure your business is prioritising data ethics to ensure you maintain trust with your customers moving forward.

  

  Here are three benefits of data ethics that will help you develop trust, maintain a solid reputation and stay compliant to continue growing your business :

  1. Compliance with data privacy

  Privacy is everything. 

  In a world where our data is being collected nonstop, and we live more public lives than ever with social media, AI and an influx of recording and tracking in everyday life, you need to protect the privacy of your customers.

  One crucial way to protect that privacy is by complying with major data privacy regulations.

  Some of the most common regulations you need to remain compliant with include :

  • General Data Protection Regulation (GDPR)
  • California Consumer Privacy Act (CCPA)
  • Health Insurance Portability and Accountability Act (HIPAA)
  • General Personal Data Protection Law (LGPD)
  • Privacy and Electronic Communications (EC Directive) Regulations (PECR)

  While these regulations don’t directly address ethics, there’s a core overlap between privacy requirements like accountability, lawfulness and AI ethics.

  Matomo ensures you protect the privacy of your web and app users so you can track and improve your website performance with peace of mind.

  2. Maintain a good reputation

  While data ethics can help you maintain data privacy compliance, it can also help you maintain a good reputation online and offline.

  All it takes is one bad event like the British Airways breach for your company’s reputation to be ruined.

  If you want to keep a solid reputation and maintain trust with your stakeholders, customers and lawmakers, then you need to focus on developing strong data ethics.

  Businesses that invest time in establishing proper data ethics set the right foundation to protect their reputation, develop trust with stakeholders and create goodwill and loyalty.

  3. Increased trust means greater revenue

  What happens when you establish proper data ethics ?

  You’ll gain the trust of your customers, maintain a solid reputation and increase your brand image.

  Customers who trust you to protect their privacy and data want to keep doing business with you.

  So, what’s the end result for a business that values data ethics ?

  You’ll generate more revenue in the long run. Trust is one thing you should never put on the back burner if you have plans to keep growing your business. By leaning more into data ethics, you’ll be able to build that brand reputation that helps people feel comfortable buying your products and services on repeat.

  While spending time and money on data ethics may seem like an annoyance, the reality is that it’s a business investment that will pay dividends for years to come.

  5 core data ethics principles

  So, what exactly is involved in data ethics ?

  For most people, data ethics is a pretty broad and vague term. If you’re curious about the core pillars of data ethics, then keep reading.

  Here are five core data ethical principles you need to follow to ensure you’re protecting your customers’ data and maintaining trust :

  

  1. Data ownership

  The individual owns the data, not you. This is the first principle of data ethics. You don’t have control over someone else’s data. It’s theirs, and they have full ownership over it.

  Just as stealing a TV from an electronics store is a crime, stealing (or collecting) someone’s personal data without their consent is considered unlawful and unethical.

  Consent is the only way to ethically “own” someone’s data.

  How can you collect someone’s data ethically ?

  • Digital privacy policies
  • Signed, written agreements
  • Popups with checkboxes that allow you to track users’ behaviour

  Essentially, anytime you’re collecting data from your website or app users, you need to ensure you’re asking permission for that data.

  You should never assume a website visitor or customer is okay with you collecting your data automatically. Instead, ask permission to collect, track and use their data to avoid legal and ethical issues.

  2. Transparency

  The second core principle of data ethics within business is transparency. This means you need to be fully transparent on when, where and how you :

  • Collect data
  • Store data
  • Use data

  In other words, you need to allow your customers and website visitors to have a window inside your data activities.

  They need to be able to see exactly how you plan on using the data you’re collecting from them.

  For example, imagine you implemented a new initiative to personalise the website experience for each user based on individual behaviour. To do this, you’ll need to track cookies. In this case, you’d need to write up a new policy stating how this behavioural data is going to be collected, tracked and used.

  It’s within your website visitors’ rights to access this information so they can choose whether or not they want to accept or decline your website’s cookies.

  With any new data collection or tracking, you need to be 100% clear about how you’re going to use the data. You can’t be deceptive, misleading, or withholding any information on how you will use the data, as this is unethical and, in many cases, unlawful.

  3. Privacy

  Another important branch of ethics is privacy. The ethical implications of this should be obvious.

  When your users, visitors, or customers enter your sphere of influence and you begin collecting data on them, you are responsible for keeping that data private.

  When someone accepts the terms of your data usage, they’re not agreeing to have their data released to the public. They’re agreeing to let you leverage that data as their trusted business provider to better serve them. They expect you to maintain privacy.

  You can’t spread private information to third parties. You can’t blast this data to the public. 

  This is especially important if someone allows you to collect and use their personally identifiable information (PII), such as :

  • First and last name
  • Email address
  • Date of birth
  • Home address
  • Phone number

  To protect your audience’s data, you should only store it in a secure database. 

  

  For example, Matomo’s web analytics solution guarantees the privacy of both your users and analytics data.

  With Matomo, you have complete ownership of your data. Unlike other web analytics solutions that exploit your data for advertising purposes, Matomo users can use analytics with confidence, knowing that their data won’t be sold to advertisers.

  Learn more about data privacy with Matomo here.

  Try Matomo for Free

  Get the web insights you need, while respecting user privacy.

  Start for free

  No credit card required

  4. Intention

  When you collect and store data, you need to tell your users why you’re collecting their data. But there’s another principle of data ethics that goes beyond the reason you give your customers.

  Intention is the reason you give yourself for collecting and using the data.

  Before you start collecting and storing data, you should ask yourself the following :

  • Why you need it
  • What you’ll gain from it
  • What changes you’ll be able to make after you analyse the data

  If your intention is wrong in any way, it’s unethical to collect the data :

  • You’re collecting data to hurt others
  • You’re collecting data to profit from your users’ weaknesses
  • You’re collecting data for any other malicious reason

  When you collect data, you need to have the right intentions to maintain proper data ethics ; otherwise, you could harm your brand, break trust and ruin your reputation.

  5. Outcomes

  You may have the best intentions, but sometimes, there are negative outcomes from data use.

  For example, British Airways’ intention was not to allow hackers to gain access and harm their users. But the reality is that their customers’ data was stolen and used for malicious purposes. While this isn’t technically unlawful, the outcome of collecting data ended badly.

  To ensure proper data ethics, you must have good standing with your data. This means protecting your users at all costs, maintaining a good reputation and ensuring proper privacy measures are set up.

  How to implement data ethics as a business leader

  As a business leader, CTO or CEO, it’s your responsibility to implement data ethics within your organisation. Here are some tips to implement data ethics based on the size and stage of your organisation :

  Startups

  If you’re a startup, you need to be mindful of which technology and tools you use to collect, store and use data to help you grow your business.

  It can be a real challenge to juggle all the moving parts of a startup since things can change so quickly. However, it’s crucial to establish a leader and allow easy access to ethical analysis resources to maintain proper data ethics early on.

  Small and medium-sized businesses

  As you begin scaling, you’ll likely be using even more technology. With each new business technique you implement, there will be new ways you’ll be collecting user data. 

  One of the key processes involved in managing data as you grow is to hire engineers who build out different technologies. You must have protocols, best practices and management overseeing the new technologies being built to ensure proper data ethics.

  Global businesses

  Have you scaled internationally ?

  There will be even more rules, laws, regulations and organisations to answer to if you start managing data unethically.

  You should have established teams or departments to ensure you follow proper privacy and data protocols worldwide. When you have a large organisation, you have more money and vast amounts of data. This makes you a bigger target for leaks, ransomware and hackers.

  You should ensure you have cross-departmental groups working to establish ongoing protocols and training to keep your data management in good standing.

  Leverage data ethically with Matomo

  Data is powerful.

  It’s a crucial point of leverage that’s required to stay competitive.

  However, improper use and management of data can give you a bad reputation, break trust and even cause you legal trouble.

  That’s why you must maintain good data ethics within your organisation.

  One of the most important places to set up proper data ethics and privacy measures is with your website analytics.

  Matomo is the leading, privacy-friendly web analytics solution in the world. It automatically collects, stores, and tracks data across your website ethically.

  With over 1 million websites using Matomo, you get to take full control over your website performance with :

  • Accurate data (no data sampling)
  • Privacy-friendly and GDPR-compliant analytics
  • Open-source for transparency and to create a custom solution for you

  Try Matomo free for 21-days. No credit card required.

  Try Matomo for Free

  21 day free trial. No credit card required.

  
  

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• 8 Best Tools to Analyse Website Traffic

  12 septembre 2023, par Erin — Analytics Tips, Marketing

  Do you want to analyse your website traffic ?

  Maybe you want to know how well you’re converting your traffic. Or maybe you’re looking to track the performance and ROI of your marketing campaigns. Regardless, you won’t get far without relying on a dependable web traffic analysis platform.

  In this article, we’ve compiled a list of the top web analytics tools available (including the pricing for each one).

  Let’s dive in.

  What is website traffic analysis ?

  Curious about what it means to analyse website traffic ?

  

  Simply put, it involves collecting and examining data about your website visitors and the actions they take. Marketers, analysts and website owners can then take this data and use it to optimise their strategy to improve site traffic, conversion rates and ROI.

  A website analytics tool is software that tracks and measures various visitor activities and behaviours on your website. Common metrics include pageviews, traffic source, bounce rate and average time on page. Using a web analytics solution can give you insights into what’s working (and what’s not working) so you can optimise your website, campaigns or marketing strategy.

  Advantages of using a website traffic analysis tool

  1. Performance measurement and optimisation

  Tracking the success of your marketing efforts is a challenging task. The primary benefit of using a web analytics tool is implementing effective performance measurement. If you don’t know how to measure your efforts, you won’t know what’s working and what’s not with your campaigns and content. 

  A web analysis tool can give you the insights you need to understand whether your marketing initiatives have been successful or if they need to be improved.

  For instance, your new web design facelift may seem beautiful, but if visitors aren’t staying on your site as long and it is resulting in lower conversions, then it’s time to go back to the drawing board.

  2. Audience insights to improve the user experience

  Web traffic analysis platforms don’t just show you what your visitors are doing. It shows you who your audience is. A powerful website analytics tool will give you in-depth audience data, including demographics like geographical location (e.g., city, state or country), to help you better understand your audience.

  Additionally, you can learn more about your audience by seeing how they interact with different content on your site. You’ll start to see that certain content performs better than others, giving you a greater understanding of your audience’s needs and wants. This means you’ll be able to tailor your website content and marketing efforts to your audience to improve the overall user experience.

  3. Improve SEO

  In the first two advantages, we touched on how insights can help you craft better content for the visitors already coming to your site to improve the user experience and improve conversions. But did you know that using a website analytics tool can also help improve how much traffic you’re getting to your site ?

  Since a web analytics tool can help you craft better content, one side effect is an increase in traffic from organic search through SEO. Additionally, your platform will likely show you other traffic sources that your visitors are coming from (i.e., another website is referring traffic to you) so you can tap into those high-performing sources and optimise your incoming traffic over time.

  Top 8 Tools to Analyse Website Traffic

  Here’s a breakdown of the top eight web analytics platforms to help you analyse each tool’s unique features, price, advantages and disadvantages so you can make the best decision.

  1. Matomo

  Matomo is an open-source website analytics tool that’s focused on protecting user privacy and data while offering robust insights into your web traffic. It’s one of the most powerful tools to track the entire customer journey on your site.

  

  Why Matomo : As the leader in open-source, privacy-friendly and ethical web analytics, Matomo is trusted by more than 1 million websites, including NASA, the United Nations and the European Commission.

  Matomo plays well with Google Analytics to track your websites by filling in the gaps where Google Analytics has limitations (i.e., cookie consent banner requirement). Matomo combines traditional and behavioural web analytics for deeper insights while ensuring compliance with the strictest privacy regulations like GDPR, LGPD and HIPAA.

  Matomo Standout Features and Integrations :

  Standout features include comprehensive visitor tracking, multi-attribution, goal tracking, event tracking, custom dimensions, custom reports, automated email reports, session recordings, tag manager, roll-up reporting to pull data from multiple sites, Google Analytics importer, heatmaps and more.

  Integrations include WordPress, Google Ads, Wix, Drupal, Joomla, Cloudflare, Magento, Vue, SharePoint, WooCommerce and more.

  Pricing starts free for Matomo On-Premise (but requires technical skills and servers to set up) and $23/month for Matomo Cloud, which includes a 21-day free trial (no credit card required).

  Pros

  • Best for respecting visitor privacy
  • You own your data — ensuring that it’s not shared with third parties for purposes like advertising
  • Compliant with the strictest privacy laws
  • Greater flexibility with open-source advantages, as well as the option to either self-host or cloud host
  • Can run cookieless — providing 100% accurate data and a better user experience without the need for an annoying cookie consent banner 
  • Exceptional customisability — from white labeling, alerts and custom dimensions to dashboards and reports, tailor your insights for faster decisions, deeper insights and superior outcomes

  Cons

  • On-Premise is free, but there are additional costs for advanced features
  • On-Premise requires servers and technical expertise to manage

  2. Google Analytics

  Google Analytics is the most well-known and used web analytics platform in the world, with nearly 30 million active websites.

  

  Why Google Analytics : It’s one of the leading web traffic analysis tools backed by the Alphabet group of companies. For anyone getting started, it’s a great free option to understand your web traffic and your audience.

  Google Analytics Standout Features and Integrations :

  Standout features include in-depth visitor tracking, event tracking with Google Analytics 4 (GA4), easy integration with Google marketing tools (i.e., Google Search Console and Google Ads), custom reports and easy data importing from third-party sources.

  Integrations include Google Ads, Google Webmaster Tools, AdSense, WordPress, Wix, Shopify, Zendesk, Facebook, Marketo, WordPress, Hotjar, SEMrush, Salesforce, Hootsuite and more.

  Pricing is free.

  Pros

  • Detailed audience insights
  • Customisable reports
  • Seamless integration with other Google products
  • Easy to set up

  Cons

  • Not privacy-friendly — you don’t own your data (data is shared with third parties for advertising purposes)
  • Complex interface
  • Requires cookie consent banner for GDPR compliance, which negatively impacts data accuracy and user experience

  3. Fathom Analytics

  Founded in 2018, Fathom Analytics is a privacy-friendly and lightweight web analytics tool. The platform offers a simple, minimalistic dashboard.

  

  Why Fathom Analytics : Fathom Analytics is a minimalistic tool to help website owners gain insights into customer behaviour without compromising on privacy. It’s an easy-to-use tool that offers a simplified breakdown of the most popular data points. For newcomers to web analytics seeking essential metrics like visitor counts and traffic sources, Fathom Analytics provides a straightforward, cost-effective solution.

  Fathom Analytics Standout Features and Integrations :

  Standout features include easy, automated GA4 importing with lifetime data retention, a single-page dashboard for a quick overview of metrics, traffic summaries for chosen timeframes, visually striking graphs for better data digestion and privacy protection covering major compliance regulations.

  Integrations include Google Analytics, Squarespace, Drupal, WordPress, Discourse, Bloggi, ConvertKit, Webflow, Transistor, Remix, Gatsby and Carrd.

  Pricing starts at $14/month for up to 100k pageviews (with a 30-day free trial).

  Pros

  • Doesn’t use cookies
  • Out-of-the-box GDPR, ePrivacy, PECR and CCPA compliance
  • Great for visual data insights
  • Lightweight tracking script for fast loading

  Cons

  • Can’t easily see traffic trends on specific pages
  • Metrics may be too simple for those wanting advanced analytics

  4. Mixpanel

  Mixpanel is a web analytics platform that helps you track visitors as well as improve customer retention. The software has 8,000 customers worldwide, including Netflix, Yelp, BuzzFeed and CNN.

  

  Why Mixpanel : Mixpanel is great for websites with e-commerce functionality. The tool helps you understand both your site visitors and your customers so you can optimise your customer experience and improve conversions.

  Mixpanel Standout Features and Integrations :

  Standout features include deep insights into how your products are being used, including your most popular features, user cohorts that let you segment users based on specific actions, and visual analysis showing where users drop off.

  Integrations include Google Cloud, Figma, Mailchimp, Zoho CRM, Databox, Marketo, Hotjar, Slack, Zapier, Amazon Web Services, Google Ads and HubSpot.

  Pricing starts free for up to 20 million events per month and $20/month for Growth.

  Pros

  • Interface is easy for beginners
  • Exhaustive reporting options
  • Custom event tracking options
  • Predict user actions based on data science models
  • Send targeted messages to specific users to encourage action

  Cons

  • User-based pricing isn’t the most ideal for everyone
  • Alert management can be confusing

  5. Kissmetrics

  Kissmetrics is a marketing and product analytics tool that helps e-commerce and SaaS companies grow through qualitative data insights. The web analytics tool is trusted by 10,000 users, including Microsoft, Unbounce, AWeber, Dropbox DocSend and SendGrid.

  

  Why Kissmetrics : As an e-commerce-driven analytics platform, the platform is best suited for Enterprise businesses, but it also offers flexible pricing plans that make it easy for someone to get their feet wet with website analytics. 

  Kissmetrics Standout Features and Integrations :

  Standout features include a customisable dashboard to see key metrics at a glance, comprehensive visitor tracking, cohort analysis including power user tracking to understand your most active visitors and customers and insights into customer lifetime value and churn rate.

  Integrations include Chargify, HubSpot, Slack, Live Chat, Marketo, Optimizely, Mailchimp, Recurly, Wufoo Forms, Facebook Ads, WordPress, Shopify and WooCommerce.

  Pricing starts at $0.0025/event for the Pay As You Go Plan, $25.99/month for Build Your Plan and $199/month for Small Teams, which includes a 7-day free trial.

  Pros

  • Flexible pricing options
  • Easy to install
  • Several analytics viewing options
  • Visual checkout funnel insights
  • Track sessions by desktop or mobile

  Cons

  • Despite more pricing options, it’s still quite expensive overall
  • Difficult to use for beginners

  6. Adobe Analytics

  Adobe Analytics is a web and marketing analytics platform within the Adobe Experience Platform. Used by over 170,000 businesses, it’s one of the most popular analytics solutions available.

  

  Why Adobe Analytics : Adobe Analytics was created for large organisations. It’s essentially the enterprise version of Google Analytics. The tool does a great job of offering a customised analytics solution that’s capable of delivering personalised user experiences at scale.

  Adobe Analytics Standout Features and Integrations :

  Standout features include attribution, AI-driven predictive analytics, robust customer segmentation and automation based on customer behaviour.

  Integrations include all Adobe products, Salesforce, Hootsuite, Contentsquare, Sisense, Mouseflow, Google Ads, Google Search Console, HubSpot and Microsoft Teams.

  Pricing is custom and available upon request, but users can expect to pay at least $2,000 per month, and there is no free trial.

  Pros

  • Built for enterprise businesses
  • Seamless workflow integration for Adobe Experience Cloud users
  • Incredible customisation options
  • Integration process is flexible
  • Capable of accurately tracking large volumes of traffic

  Cons

  • Very expensive
  • Not suitable for small businesses
  • The setup is challenging for beginners

  7. SimilarWeb

  SimilarWeb is a robust analytics platform used to track your website data and compare it to other websites. Backed by a team of experienced data scientists and mathematicians for in-depth website traffic and search engine analysis. Founded in 2007, the platform is trusted by major brands like Adidas, DHL, PepsiCo and Walmart.

  

  Why SimilarWeb : The tool relies on multiple scientific methodologies and approaches to data analysis to help provide a better understanding of visitors and customers. The platform is great for crafting prediction models for customer acquisitions by using machine learning to offer SEO insights and competitive analysis.

  SimilarWeb Standout Features and Integrations :

  Standout features include competition traffic and engagement analysis, in-depth visitor tracking, keyword analysis to optimise your SEO and search ads, affiliate traffic analysis, search traffic analysis and funnel insights.

  Integrations include Salesforce, HubSpot, Google Analytics, Google Search Console, Shift, AT Internet, Adverity, SimilarTech, Biscience and more. 

  Pricing starts at $125/month for the Starter plan, which includes a 7-day free trial.

  Pros

  • Has a user-friendly dashboard for simple insights
  • Highly customisable platform to meet your specific needs
  • Easy competition analysis
  • Funnel insights to improve your conversion rates
  • Great customer support

  Cons

  • Expensive pricing
  • Doesn’t include a code snippet to pull data directly from websites
  • Doesn’t show sub-domains of your site

  8. Hotjar

  Hotjar is a behavioural website analytics tool with a focus on providing insights into individual user sessions with features like heatmaps and session recordings. Founded in 2014, Hotjar is used by 900,000 sites around the world.

  

  Why Hotjar : Unlike traditional web analytics tools like Google Analytics, Hotjar is a behavioural analytics tool that provides in-depth behaviour insights session by session. The tool offers a variety of features that give you a sneak peek into your users’ behaviours by watching how they interact with your site action by action.

  Hotjar Standout Features and Integrations :

  Standout features include comprehensive heat mapping, visitor session recordings to see what visitors did moment by moment, feedback polls to gain insights from site visitors and conversion funnels to help you analyse leaks in your funnel at each conversion stage.

  Integrations include HubSpot, Slack, Jira, WordPress, Shopify, Google Analytics, Mixpanel, Microsoft Teams, Zapier and ClickFunnels.

  Pricing starts at free for the Basic plan and $80/month for Business, which includes a 15-day free trial.

  Pros

  • You can see exactly where visitors click, move and scroll
  • Watch session replays to see what visitors did step-by-step
  • See what percentage of visitors take certain actions
  • Data segmentation features to help you understand KPIs in-depth
  • There are no user limits with the platform, making it easy to scale

  Cons

  • While it offers behavioural analytics, Hotjar doesn’t provide insights into traditional web analytics like Matomo does, including traffic sources and bounce rate
  • History data monitoring is complex

  Elevate your website performance today

  Understanding your visitors’ behaviour and needs is essential when you’re looking to improve your website performance.

  By leveraging a website analytics platform, you’ll be able to gain new insights into your visitors and use insights from your content and campaign performance to improve your user experience.

  If you’re looking to start using a web traffic analysis tool today, then Matomo is an excellent choice.

  Matomo is a powerful, privacy-friendly and compliant tool that gives in-depth insights into your audience, your content and your marketing efforts to help you improve your site’s performance.

  The platform also includes a variety of robust behavioural analytics features like heatmaps, session recording and more, which are included in your Cloud subscription. 

  Start your 21-day free trial of Matomo today (no credit card required).

• Overcoming Fintech and Finserv’s Biggest Data Analytics Challenges

  13 septembre 2024, par Daniel Crough — Banking and Financial Services, Marketing, Security

  Data powers innovation in financial technology (fintech), from personalized banking services to advanced fraud detection systems. Industry leaders recognize the value of strong security measures and customer privacy. A recent survey highlights this focus, with 72% of finance Chief Risk Officers identifying cybersecurity as their primary concern.

  Beyond cybersecurity, fintech and financial services (finserv) companies are bogged down with massive amounts of data spread throughout disconnected systems. Between this, a complex regulatory landscape and an increasingly tech-savvy and sceptical consumer base, fintech and finserv companies have a lot on their plates.

  How can marketing teams get the information they need while staying focused on compliance and providing customer value ? 

  This article will examine strategies to address common challenges in the finserv and fintech industries. We’ll focus on using appropriate tools, following effective data management practices, and learning from traditional banks’ approaches to similar issues.

  What are the biggest fintech data analytics challenges, and how do they intersect with traditional banking ?

  Recent years have been tough for the fintech industry, especially after the pandemic. This period has brought new hurdles in data analysis and made existing ones more complex. As the market stabilises, both fintech and finserve companies must tackle these evolving data issues.

  Let’s examine some of the most significant data analytics challenges facing the fintech industry, starting with an issue that’s prevalent across the financial sector :

  1. Battling data silos

  In a recent survey by InterSystems, 54% of financial institution leaders said data silos are their biggest barrier to innovation, while 62% said removing silos is their priority data strategy for the next year.

  

  Data silos segregate data repositories across departments, products and other divisions. This is a major issue in traditional banking and something fintech companies should avoid inheriting at all costs.

  Siloed data makes it harder for decision-makers to view business performance with 360-degree clarity. It’s also expensive to maintain and operationalise and can evolve into privacy and data compliance issues if left unchecked.

  To avoid or remove data silos, develop a data governance framework and centralise your data repositories. Next, simplify your analytics stack into as few integrated tools as possible because complex tech stacks are one of the leading causes of data silos.

  Use an analytics system like Matomo that incorporates web analytics, marketing attribution and CRO testing into one toolkit.

  

  Matomo’s support plans help you implement a data system to meet the unique needs of your business and avoid issues like data silos. We also offer data warehouse exporting as a feature to bring all of your web analytics, customer data, support data, etc., into one centralised location.

  Try Matomo for free today, or contact our sales team to discuss support plans.

  2. Compliance with laws and regulations

  A survey by Alloy reveals that 93% of fintech companies find it difficult to meet compliance regulations. The cost of staying compliant tops their list of worries (23%), outranking even the financial hit from fraud (21%) – and this in a year marked by cyber threats.

  

  Data privacy laws are constantly changing, and the landscape varies across global regions, making adherence even more challenging for fintechs and traditional banks operating in multiple markets. 

  In the US market, companies grapple with regulations at both federal and state levels. Here are some of the state-level legislation coming into effect for 2024-2026 :

  • Oregon – Oregon Consumer Privacy Act (July 1, 2024)
  • Florida – Florida Digital Bill of Rights (July 1, 2024)
  • Texas – Texas Data Privacy and Security Act (July 1, 2024)
  • Montana – Montana Consumer Data Privacy Act (October 1, 2024)
  • Delaware – Delaware Personal Privacy Act (January 1, 2025)
  • Iowa – Iowa Consumer Data Protection Act (January 1, 2025)
  • New Jersey – SB 332 (January 15, 2025)
  • Tennessee – Tennessee Information Protection Act (July 1, 2025)
  • Indiana – Indiana Consumer Data Protection Act ( January 1, 2026)

  Other countries are also ramping up regional regulations. For instance, Canada has Quebec’s Act Respecting the Protection of Personal Information in the Private Sector and British Columbia’s Personal Information Protection Act (BC PIPA).

  Ignorance of country- or region-specific laws will not stop companies from suffering the consequences of violating them.

  The only answer is to invest in adherence and manage business growth accordingly. Ultimately, compliance is more affordable than non-compliance – not only in terms of the potential fines but also the potential risks to reputation, consumer trust and customer loyalty.

  This is an expensive lesson that fintech and traditional financial companies have had to learn together. GDPR regulators hit CaixaBank S.A, one of Spain’s largest banks, with multiple multi-million Euro fines, and Klarna Bank AB, a popular Swedish fintech company, for €720,000.

  To avoid similar fates, companies should :

  1. Build solid data systems
  2. Hire compliance experts
  3. Train their teams thoroughly
  4. Choose data analytics tools carefully

  Remember, even popular tools like Google Analytics aren’t automatically safe. Find out how Matomo helps you gather useful insights while sticking to rules like GDPR.

  3. Protecting against data security threats

  Cyber threats are increasing in volume and sophistication, with the financial sector becoming the most breached in 2023.

  

  The cybersecurity risks will only worsen, with WEF estimating annual cybercrime expenses of up to USD $10.5 trillion globally by 2025, up from USD $3 trillion in 2015.

  While technology brings new security solutions, it also amplifies existing risks and creates new ones. A 2024 McKinsey report warns that the risk of data breaches will continue to increase as the financial industry increasingly relies on third-party data tools and cloud computing services unless they simultaneously improve their security posture.

  The reality is that adopting a third-party data system without taking the proper precautions means adopting its security vulnerabilities.

  In 2023, the MOVEit data breach affected companies worldwide, including financial institutions using its file transfer system. One hack created a global data crisis, potentially affecting the customer data of every company using this one software product.

  The McKinsey report emphasises choosing tools wisely. Why ? Because when customer data is compromised, it’s your company that takes the heat, not the tool provider. As the report states :

  “Companies need reliable, insightful metrics and reporting (such as security compliance, risk metrics and vulnerability tracking) to prove to regulators the health of their security capabilities and to manage those capabilities.”

  Don’t put user or customer data in the hands of companies you can’t trust. Work with providers that care about security as much as you do. With Matomo, you own all of your data, ensuring it’s never used for unknown purposes.

  

  4. Protecting users’ privacy

  With security threats increasing, fintech companies and traditional banks must prioritise user privacy protection. Users are also increasingly aware of privacy threats and ready to walk away from companies that lose their trust.

  Cisco’s 2023 Data Privacy Benchmark Study reveals some eye-opening statistics :

  • 94% of companies said their customers wouldn’t buy from them if their data wasn’t protected, and 
  • 95% see privacy as a business necessity, not just a legal requirement.

  Modern financial companies must balance data collection and management with increasing privacy demands. This may sound contradictory for companies reliant on dated practices like third-party cookies, but they need to learn to thrive in a cookieless web as customers move to banks and service providers that have strong data ethics.

  This privacy protection journey starts with implementing web analytics ethically from the very first session.

  

  The most important elements of ethically-sound web analytics in fintech are :

  1. 100% data ownership : Make sure your data isn’t used in other ways by the tools that collect it.
  2. Respecting user privacy : Only collect the data you absolutely need to do your job and avoid personally identifiable information.
  3. Regulatory compliance : Stick with solutions built for compliance to stay out of legal trouble.
  4. Data transparency : Know how your tools use your data and let your customers know how you use it.

  Read our guide to ethical web analytics for more information.

  5. Comparing customer trust across industries 

  While fintech companies are making waves in the financial world, they’re still playing catch-up when it comes to earning customer trust. According to RFI Global, fintech has a consumer trust score of 5.8/10 in 2024, while traditional banking scores 7.6/10.

  

  This trust gap isn’t just about perception – it’s rooted in real issues :

  • Security breaches are making headlines more often.
  • Privacy regulations like GDPR are making consumers more aware of their rights.
  • Some fintech companies are struggling to handle fraud effectively.

  According to the UK’s Payment Systems Regulator, digital banking brands Monzo and Starling had some of the highest fraudulent activity rates in 2022. Yet, Monzo only reimbursed 6% of customers who reported suspicious transactions, compared to 70% for NatWest and 91% for Nationwide.

  So, what can fintech firms do to close this trust gap ?

  • Start with privacy-centric analytics from day one. This shows customers you value their privacy from the get-go.
  • Build and maintain a long-term reputation free of data leaks and privacy issues. One major breach can undo years of trust-building.
  • Learn from traditional banks when it comes to handling issues like fraudulent transactions, identity theft, and data breaches. Prompt, customer-friendly resolutions go a long way.
  • Remember : cutting-edge financial technology doesn’t make up for poor customer care. If your digital bank won’t refund customers who’ve fallen victim to credit card fraud, they’ll likely switch to a traditional bank that will.

  The fintech sector has made strides in innovation, but there’s still work to do in establishing trustworthiness. By focusing on robust security, transparent practices, and excellent customer service, fintech companies can bridge the trust gap and compete more effectively with traditional banks.

  6. Collecting quality data

  Adhering to data privacy regulations, protecting user data and implementing ethical analytics raises another challenge. How can companies do all of these things and still collect reliable, quality data ?

  Google’s answer is using predictive models, but this replaces real data with calculations and guesswork. The worst part is that Google Analytics doesn’t even let you use all of the data you collect in the first place. Instead, it uses something called data sampling once you pass certain thresholds.

  In practice, this means that Google Analytics uses a limited set of your data to calculate reports. We’ve discussed GA4 data sampling at length before, but there are two key problems for companies here :

  1. A sample size that’s too small won’t give you a full representation of your data.
  2. The more visitors that come to your site, the less accurate your reports will become.

  For high-growth companies, data sampling simply can’t keep up. Financial marketers widely recognise the shortcomings of big tech analytics providers. In fact, 80% of them say they’re concerned about data bias from major providers like Google and Meta affecting valuable insights.

  This is precisely why CRO:NYX Digital approached us after discovering Google Analytics wasn’t providing accurate campaign data. We set up an analytics system to suit the company’s needs and tested it alongside Google Analytics for multiple campaigns. In one instance, Google Analytics failed to register 6,837 users in a single day, approximately 9.8% of the total tracked by Matomo.

  In another instance, Google Analytics only tracked 600 visitors over 24 hours, while Matomo recorded nearly 71,000 visitors – an 11,700% discrepancy.

  

  Financial companies need a more reliable, privacy-centric alternative to Google Analytics that captures quality data without putting users at potential risk. This is why we built Matomo and why our customers love having total control and visibility of their data.

  Unlock the full power of fintech data analytics with Matomo

  Fintech companies face many data-related challenges, so compliant web analytics shouldn’t be one of them. 

  With Matomo, you get :

  • An all-in-one solution that handles traditional web analytics, behavioural analytics and more with strong integrations to minimise the likelihood of data siloing
  • Full compliance with GDPR, CCPA, PIPL and more
  • Complete ownership of your data to minimise cybersecurity risks caused by negligent third parties
  • An abundance of ways to protect customer privacy, like IP address anonymisation and respect for DoNotTrack settings
  • The ability to import data from Google Analytics and distance yourself from big tech
  • High-quality data that doesn’t rely on sampling
  • A tool built with financial analytics in mind

  Don’t let big tech companies limit the power of your data with sketchy privacy policies and counterintuitive systems like data sampling. 

  Start your Matomo free trial or request a demo to unlock the full power of fintech data analytics without putting your customers’ personal information at unnecessary risk.