Data Brokers – Friend or Foe
Data Brokers are referred to as information brokers, data providers, and data suppliers as well. Their main objective is to collect the different types of data that are generated in the different types of end-user industries or buy the data that is stored with the other end-user industries and scour the internet for information about the different users that are connected to the database of the different end-user industries. The sources from which the data brokers collect the data that includes online and offline sources about the users include social media sites, web history, the purchases made using offline and online channels and their warranty information, the information regarding credit cards and other important data such as the government records, which can include, driver’s licenses, census data among others.
The data that is collected by the data brokers are then sold to other companies and used for some other purposes. These include targeting the user with ads based on their search history, or offer them safety solutions, but that depends on the type of data broker company that has collected and then sold the information. The different types of data brokers include-
MARKETING AND ADVERTISING DATA BROKERS - These types of data brokers target the user for the marketing and advertising purposes by presenting them; targeted ads related to their search histories.
FRAUD DETECTION DATA BROKERS- These types of data broker companies, offer fraud detection and data protection solution to the users and are used most commonly by mobile phone companies and banks.
RISK MITIGATION DATA BROKERS-These data broker companies make use of the users' data in order to offer high interests loans rather than low-risk loans.
PEOPLE SEARCH SITES – These are generally company-controlled websites that allow users to search for other users by around oms of their details such as names, addresses, and other information.
Data Broker Market Trends
The increasing penetration of the internet has relayed in a rising number of users to make use of the internet by online retail services and other online services, which has resulted in the generation of an exorbitant amount of data, and thus, it is becoming more vulnerable to cybersecurity threats. This is leading to the company’s adopting data brokerage solutions from different types of data brokers and is bolstering the market growth.
The rapid digitalization of the various end-user industries has led them to adopt innovative and cutting edge solutions in order to streamline the different operations and the processes in the industry, which is leading to. Besides, the presence of favorable government policies aimed at integrating Information Communication and Technology solutions in different end-user industries, which store a lot of personal data and sensitive information such as the BFSI, and Retail among others is contributing to the growth of the market.
However, there is the presence of strict guidelines and restrictions in the different regions such as the GDPR (General Data Protection Regulations) in the EU (European Union), which makes the data of the user's data top priority and is hampering the market growth to some extent.
The market has been segmented on the basis of data type, end-user industry, and geography and some of the market players operating in the different regions, and globally are Acxiom, ID Analytics, LLC, Oracle Corporation, CoreLogic, among others.
Product Launches, and Offerings by Industry Players in Data Broker Market Landscape
Moreover, the industry players are increasingly participating in the market to advance and enhance the data brokerage solutions I order to effectively manage and make use of the data that is purchased from end-user industries, by integrating the latest data analysis and management technologies and encouraging the use of such. Thus, they are involved in product launches and offerings to accelerate the development of the ICT sector, thereby boosting their market position and contributing to increasing the data broker market size.
In, June 2019, OneMedNet Corporation, which is one of the leading companies involved in offering data broker solutions to different end-user industries announced the launch of their new data broker solution product called the “Data Broker Version 1.0.0”. This product is developed to enable the images from the clinical archives to be indexed in a quicker manner, which are then searched and curated for a set of patient populations. The product by the company was presented and launched at the Society for Imaging Informatics in Medicine (SIIM), which was conducted from June 26th to June 28th
Oracle, one of the major players dealing in the provision of different solutions related to cloud engineered systems, and database software among others offer their Oracle CASB Cloud Service, which is the product that is claimed to the only Cloud Access Security Broker (CASB) that is able to provide the users with enhanced features. Some of the features it includes are; threat detection, which help in identifying threat in order to protect the cloud footprint easily, it offers predictive analytics, which is comprised of patent-pending modeling techniques so that the risks can be evaluated effectively. Lastly, another feature of this product is that it facilitates the elimination of labor-intensive processes, thus minimizing the margins of error, and leads to cost savings.
Currently, a data brokerage solution for us of management of customer data is expected to hold a significant share in this market and is anticipated to witness a fast growth rate in the upcoming years due to the burgeoning demand from the BFSI industry as well as the Telecommunication Industry. With respect to current market trends, it is anticipated that the integration of advanced technologies such Ai and the application of 5G networks and better cloud storage and cloud computing features will allow data brokers companies to flourish even more in the upcoming years with demand being generated from the retail sector and the educational sector. There is a growing need for an enhanced solution in order to provide the consumer and business solutions from different threats and breaches to their privacy. This is one of the major factors, which will continue to play a role in driving this market. In addition, it will attract many new entrants who will bring new and better changes and enhancement in data brokerage solutions. Thus, the market will remain competitive in the upcoming years and it is projected to show modest growth in the upcoming years.