Trust in Technology “There is one thing which, if removed, will destroy the most powerful government, the most successful business, the most thriving economy, the most influential leadership, the greatest friendship, the strongest character, the deepest love... That one thing is trust.” Stephen M. R. Covey, The Speed of Trust Contents 01 Foreword 03 Why we need to study the nature of trust 04 The state of trust in technology today 12 Love, lust and convenience 14 How security fears undermine trust 18 The case for robo-advisors 20 Trust at the outer limits of technology 24 H2M versus H2H: How machine interactions differ from human relationships 27 Conclusion: The path to high trust HSBC TRUST IN TECHNOLOGY 1 Foreword igital technology is The report explores some of rapidly changing the the top technology topics of the world. The number of moment, like artificial intelligence, mobile banking users biometrics, digital wallets and data is forecast to double driven nudge applications. Dbetween 2015 and 2019 to 1.8 billion, representing more than one quarter We will apply the insights this of the world’s population. As one research provides to our own of the world’s largest banking and business, as well as sharing them financial services organisations, broadly with the financial services serving more than 37 million industry and other stakeholders. customers across 70 markets, we need to anticipate and be ready to Digital demands vary from customer respond to that change. to customer and market to market, but the long-term direction is clear: Our Trust in Technology research customers should be able to bank explores public opinion about with us when they want, in the way the new technology banks and that they want. At HSBC, we want consumer-facing businesses are to apply proven digital technology to developing, and its impact on daily make our customers’ experiences lives. In this international study we simpler, better, faster and more examine people’s awareness and secure. We will continue to adapt understanding of new technologies as their needs change, to provide – their trust in them and the impact banking services on their terms. of this on adoption rates; and what people think the future looks like in terms of new innovation. John Flint Global CEO, HSBC Retail Banking and Wealth Management HSBC TRUST IN TECHNOLOGY 3 Why we need to study the nature of trust his is an age where the bodies called biometrics. Even the they can be trusted to behave in dreams of science fiction cadence of typing and swiping can be adverse conditions. are becoming a reality. The included in the security mix – a tactic This report is an exploration of list of new technologies known as behavioural analysis. the state of trust in technology. The being released is dazzling. Naturally, this deluge of new tech findings are supported by an exclusive TLife expectancy is hitting record is a challenge for users. There are survey of over 12,000 consumers highs thanks to ground-breaking new early adopters, keen to experiment across 11 major economies that looks processes. A team at Harvard Medical with each new product release. And at opinions on trust internationally. It School has grown heart tissue from behind them are more cautious users, reveals the level of trust in biometric adult skin cells. The prospect of waiting to see if a new technology security, the gap in attitude between transplant organs grown from scratch deserves their time and money. generations, and what we really feel is on the horizon. The speed of adoption is regulated about entrusting our lives to a robotic Artificial intelligence is going by a number of factors such as price intelligence. Qualitative research drills mainstream. The success of Amazon and availability, and an essential deeper into individual perspectives. Echo and Google Home smart component of trust. The more technology enters our speakers show there is an appetite No one buys anything unless they lives, the more critical the issue of for AI assistance in the home. trust it. Advertisers spend a fortune trust becomes. A FinTech startup can’t Autonomous cars are being test building trust, and designers work hard win customers without winning their driven. Sometime in the next decade to foster it. Without trust, a technology trust. A bank can’t keep customers it will be normal to be chauffeured can be ingenious and cheap, but will without being trusted. In order to by an AI. remain on the shelf untouched. deliver life enhancing new products Financial services are being re- The bedrock of trust is reliability. they need to know what trust is, and invented by new technology. Apps Will the product do what it says it will? how to win it. make it quick to send money and Security is a key concern. Stories The goal? The philosopher Onora check accounts. Online consultation of data leaks and unauthorised data O’Neill put it well: “The aim is to have services, nicknamed robo-advisors, sharing are all too familiar. There can more trust. Well frankly, I think that’s are bringing expert guidance on be no trust unless these worries are a stupid aim. It’s not what I would investment and pensions to a wider overcome. aim at. I would aim to have more audience. Security is becoming As artificial intelligence takes on trust in the trustworthy but not in the quicker, simpler, and more reliable more duties, the question gets a little untrustworthy. In fact, I aim positively through fingerprint, voice and iris trickier. For example, autonomous to try not to trust the untrustworthy.” scanning, a collection of technologies vehicles are close to launch, and This report offers some suggestions based on unique elements of people’s questions are being asked whether on how we reach that goal.n HSBC TRUST IN TECHNOLOGY 4 The state of trust in technology today echnology continues to This warmth extends to using develop at a rapid pace technology, with 76% saying they with faster, simpler and feel comfortable using new technology, more secure innovations and 80% saying they believe being launched on an technology makes their life easier. Talmost daily basis. But what is the Then respondents were asked public appetite for creative new about fields of emerging technology. tech? HSBC commissioned a survey The sunny outlook quickly fades. across 11 major international markets Artificial intelligence is a booming to understand how people trust in field, with engines such as IBM technology to manage their financial Watson and Wipro Holmes able to affairs and daily lives. diagnose cancer, analyse retail data, Our research shows a lack of trust and communicate through ordinary and understanding is holding back the spoken and written language. adoption of new technologies. However, AI is not yet trusted, The survey began by establishing a instead it struggles to win support. baseline of trust – how optimistic and Only 8% would trust a humanoid generous people tend to be in general. advisor programmed by experts to The results are positive. By default, offer mortgage advice, compared to there is a high level of social trust. 41% trusting a mortgage broker. For People give each other the benefit of context, 9% would be likely to use the doubt, with 68% saying they will a horoscope to guide investment trust a person until proved otherwise, choices, and 10% would be likely to be and 48% believe the majority of people influenced by the flip of a coin. are trustworthy compared to 20% Robotics is advancing through links who disagree. The outlook on life is to AI. How about allowing a robot to positive, with 65% confirming they are conduct a surgical operation? Only one always optimistic about their future, in seven (14%) would trust a humanoid and half saying “things that seem bad robot programmed by leading surgeons normally turn out okay in the end,” to conduct open heart surgery on triple those disagreeing. them, just five percentage points HSBC TRUST IN TECHNOLOGY 5 ahead of the rather unnerving prospect technology is earned, not given. of a family member doing the operation Caution is the default. supported by a surgeon (9%). In-depth interviews conducted as Biometric security is another field part of this study looked deeper at with huge potential. It’s possible to the thinking behind trust. Consumers use fingerprint, voice, iris, and facial were interviewed across international patterns to confirm an identity. Security markets, and the results were then experts regard biometrics as a potential discussed by a panel of technology breakthrough in the fight against experts. identity theft. Trust in people produces However, trust is yet to be fully testimony brimming with emotion achieved in biometric technologies. and enthusiasm. An interviewee from Iris recognition is trusted by 26% to Hong Kong produced a photograph and replace alphanumeric passwords, a said, “My best friends since secondary combination of letters, symbols and school. I truly trust everyone of them numbers to confirm their identity and due to our deep bonds. Though we’re in prevent unauthorised access, with different universities and experiencing voice recognition and facial recognition different university life, we are also the both trusted by 18%. best listeners to each other and truly Even quite straightforward consider each other as brothers.” technology is regarded with scepticism By contrast, trust in machines under certain circumstances. For was expressed as transactional. example, skydivers are usually Performance is what matters. A equipped with an automatic failsafe Chinese interviewee expressed their triggered by an altimeter. But when logic on what to trust: “It [Trust] is asked what they’d trust to open a being sure that the thing will not fail parachute on a skydive, 65% opted for or disappoint you with its quality, “an instructor with me”, 53% trusted operation and/or handling.