#66 Data marketplaces: How to increase trust?

Data marketplaces are platforms that connect data providers and consumers of data sets, data related services (sometimes even consultancy) and data streams ensuring high quality, consistency and security.


But first a few words about trust or lack thereof. It is a natural reaction to be a bit skeptical in today’s world. We are all familiar with the everyday considerations and fears like these:

- What if I pay for nothing and the product is never even delivered to me.

- What can I do to avoid renting my apartment to a tenant who breaks the places and fails to pay the rents as well.

- Is my credit card information or my personal data leaking to criminal activity?


Also in the data economy, and especially in the data marketplaces, unless there are mitigations and concrete solutions to fears and concerns, no transactions take place at all. No matter how great the users' need. Users should be able to trust on the solutions provided in all respects. This is a necessary requirement for a successful data marketplace.


How to increase trust between data providers and customers?


In order to increase trust between the parties, it is necessary to understand the types and sizes of risks experienced. In addition, efforts must be made to distinguish between real and imaginary risks. Imaginary risks can often be managed through good communication between the parties. Reducing real risks requires concrete actions, not just improved communication.


When you identify the risks associated with the trust in your data marketplace, you could discuss e.g. of the following things:


  1. How many users will be using the marketplace? The larger the number of users in a marketplace, the more important it is to ensure mechanisms to build trust. Large marketplace (and platform) with e.g. the greater the financial opportunities, the more often involved in seeking to join bad actors and dishonest practices.

  2. How reliable are your target marketplace users and data providers? Are there specific features in the industries or target markets that should be considered regarding trust? Are data providers able to deliver data in all situations?

  3. What are the worst case scenarios from the users point of view? For example, is it making a long contracts with bad suppliers or a one-time loss of poor quality and unreliable data?

  4. How much money is moving in the average trade? The more expensive the product, the more important it is to ensure in advance that it meets the set requirements. Is there a possibility of experimentation to ensure functionality?


Data MarketPlace: Tools and methods for building trust


Once the necessary factors have been identified, research into appropriate tools and methods for building trust can begin. My intention isn´t to make a comprehensive list of actions, but when building a trustworthy data marketplace, following actions could be taken into account:

  1. Create clear rules and code of conduct

  2. Strive to get users to tell about themselves and also be as transparent as possible in your own actions

  3. Communication between parties

  4. Social dimension - show users how they relate to each other and what the parties' dependencies are

  5. Improve the quality of users and data providers by verifying / identifying the parties

  6. Build trust with better user experience of the data marketplace and give a good first impression

  7. Content curation and ratings

  8. Always ensure that you are able to deliver what you promised

  9. Address issues quickly and transparently, create fast and provide realiable customer support

  10. Reduce customers financial risks; easy and secure payments, escrow account, insurance and deposits