Data Privacy: A foundation for trust and growth in cooperatives

KAMPALA, January 28, 2025 – Today, as the world marks Data Privacy Day under the theme, ‘’Take control of your data’’, it’s an opportunity to reflect on the critical importance of protecting personal information in our increasingly digital world. Data Privacy Day, observed annually on January 28, aims to promote online privacy and data protection awareness. Also known as Data Protection Day in Europe, it emphasises the importance of safeguarding personal information in an era where digital interactions are an integral part of daily life

And in a time where digital transformation reigns, data privacy has evolved into a fundamental necessity rather than an afterthought. For cooperatives, which flourish on community solidarity and trust, safeguarding member data should be a top priority. However, many cooperatives have yet to fully integrate data privacy into their operations, posing significant risks to their sustainability.

Cooperatives handle great volumes of sensitive member information, including financial statements, personal identification data, and business transactions. This data is crucial for providing customised services. As cooperatives digitise and automate their activities, introducing online portals, digital payment solutions, and mobile apps, they become open to data breaches and cyberattacks.

The problem is that many cooperatives frequently underestimate the value of the data they hold. They operate, under the belief that their relatively small size or community-based nature renders them undesirable targets for cybercriminals. This attitude is hazardous. Trust, a currency that cooperatives depend on more than anything else, could be fatally compromised by a single data breach.

Additionally, legal frameworks are changing swiftly. In Uganda, for instance, the Data Protection and Privacy Act of 2019, which aligns with international standards such as the General Data Protection Regulation [GDPR] in the European Union, mandates organisations to protect individuals’ privacy rights and ensure responsible and secure handling of personal data. Although complying with this law might seem like a challenging administrative task, it actually offers cooperatives an opportunity to showcase their commitment to their members. Transparent data handling builds confidence and reinforces the trust that is fundamental to cooperative membership.

Still, much as compliance, and trust are just the start of the road, data privacy provides a competitive edge over cooperatives that neglect it. Members are more likely willing to interact with cooperatives that show respect for their personal information. When privacy becomes one of the cooperative’s fundamental core values, it strengthens member loyalty, stimulates openness, and provides opportunities for customised services.

Many cooperatives, regrettably, still have weak systems or policies, as well as the technical know-how needed to adequately safeguard member data. Some have little to no training for employees on data protection, sparse cybersecurity measures, and still operate obsolete systems.  This is unacceptable in an era where cyberattacks are becoming more sophisticated and costly.

To overcome these challenges, cooperatives must take intentional steps. First, they should implement privacy-first regulations that outline clearly defined guidelines for data collection, storage, and usage. Members should be given a voice on how their data is managed and the power to access or delete their information where necessary.

Secondly, cooperatives must prioritise investments in cybersecurity, including data encryption, firewalls, and routine audits to detect vulnerabilities. These investments should be viewed as seen as safeguards for the cooperative’s future and reputation, rather than just mere expenses.

Lastly, raising awareness about the importance of data privacy is crucial. Data privacy is important for both staff and members to understand. Training initiatives and awareness drives can help to develop a society where everyone values and protects personal information.

Cooperatives are essentially about people, about trust, common values, and collective growth. Protecting member data and information is a moral obligation, and not just a legal or technological issue. As cooperatives continue to evolve in the digital age, their relevance and success will be defined by their approach toward data privacy. We need not compromise the trust that makes cooperatives unique.

https://thecooperator.news/icba-signs-mou-with-tilburg-university-to-improve-the-data-it-holds-on-members/

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