Edward Snowden’s revelations that the US government had been secretly conducting phone and internet surveillance on millions of American citizens rocked the world.
The issue of data privacy was thrown into sharp relief as consumers and policymakers alike tried to work out the implications of a society where personal data was no longer safe from prying eyes.
It’s been just over a year since the start of the Snowden affair and, in that time, firms have sprung up that offer to protect privacy or sell services that allow users to take control of their digital profiles.
There is one new service starting every week, according to personal data consultancy Ctrl-Shift. And, according to strategy director Alan Mitchell, the UK has become the epicentre for this kind of activity.
“There’s something unique about the UK,” he explains. “The Europeans are reluctant to innovate because they are largely rule-driven. The Americans have a culture of, 'Go, get ’em!’, which tends to undermine trust. But the UK is in the Goldilocks position: not too hot, not too cold. We have a strong history of data protection but also the willingness to innovate.”
Ctrl-Shift works with blue-chip companies to ensure they aren’t doing dodgy things with customer data. The consultancy also suggests new ways these data can be used to create a better service for the consumer. It also worked closely with the Government on the mydata campaign, which gives consumers the right to request full disclosure of the data held about them by brands.
The business was founded in 2009, but the first three years were “difficult”, says Mitchell. “We’d have meetings with people about personal data and they would say, 'What the hell are you talking about?’”
The Snowden effect has been significant for the business. “It was the 'Pearl Harbor’ moment that brought the Americans into the war,” he says. “It really rammed home to the public and companies that personal data was an issue that has to be dealt with.”
The company has doubled revenues year on year as a result of the increased demand for its services.
Initatives such as mydata have made the UK one of the most forward-thinking data jurisdictions in the world.
Companies - fearful of the implications of America’s Patriot Act, which allows the government to search business records, and disillusioned with European laws on data protection - are increasingly looking to London-based firms and cloud solutions to house their information.
Bookitbee provides ticketing platforms for events such as the Wychwood music festival in Cheltenham. It stores customer data securely in the UK, rather than using servers in other countries. This has become increasingly key to winning new business.
“When we started, no one asked any questions about where the data were held,” says co-founder Kenton Ward. “After the Snowden affair, one-in-four people we speak to now asks whether their data is being held in the UK.”
Last year, turnover hit £500,000 and revenues are set to double this year. “It’s given our business an edge that it didn’t have before,” adds fellow founder Frank di Mauro.
Research company Forrester estimates the data broking market is worth £2bn in the US alone. And there is now a burgeoning movement to allow consumers to profit from their data, too.
On June 9, serial entrepreneur StJohn Deakins will launch a new platform, CitizenMe, which will not only allow consumers to see all the data held about them by online companies, in a way that is easy to digest, but also let them control and shape that data profile – and even start making cash from it.
This information can range from credit ratings to buying habits. Consumers will be able to check out exactly what advertisers see when they buy their data from digital agencies.
CitizenMe goes beyond simply crunching vast data sets. Working in tandem with Cambridge University, the start-up also draws psychometric conclusions from that data. Users can find out how “angry” their tweets appear, what religious or political beliefs are suggested by their LinkedIn profile, or what IQ is suggested by their Facebook interactions.
The Snowden revelations have created the perfect conditions for a company such as CitizenMe to launch, he says. “Snowden made people think about what happens to their data. We’re in the middle of a transition from an industrial society to an information society, and people now understand the implications.”
CitizenMe will charge subscribers “a few pounds” a month for visibility and control of their personal data. However, if they choose to earn cash from data transactions, the service is free but takes a 10pc fee on all transactions.
The service aims to generate “millions of pounds” for digital citizens within two years.
According to Deakins, once consumers understand what data are available about them, commercialising it is the next logical step. “The advertising industry needs that data to serve relevant ads,” he explains. “And it is those ads that keep the internet free. If we want to maintain the current ubiquity of access to internet content and services, we have to accept that advertising needs to exist.”
Deakins warns that if companies don’t work together to rebuild consumer trust, the online sharing ecosystem will suffer. “People will become more cynical, and share less. There are already 100m ad-blocking servers in use worldwide. That’s damaging the online economy.”
To maintain a free and fair web, the market has to drive change, he adds. “80pc of the world’s population will be 'digitised’ over the next five to 10 years. Let’s make sure that this digital citizenry is empowered.”
