CURVE OF

CONVENIENCE
2020 REPORT:
THE PRIVACY-
CONVENIENCE PARADOX
CONTENTS

3 INTRODUCTION

4 METHODOLOGY

5 KEY FINDINGS

11 THE CURVE OF CONVENIENCE

12 SUMMARY

12 RELIANCE FOR DATA PROTECTION

13 IMPLICATIONS: NEW
OPPORTUNITIES IN A NEW WORLD

14 LOOKING FORWARD: FINDING

THE RIGHT DIGITAL PARTNER

F5 CURVE OF CONVENIENCE 2020/ JULY 2020 2

 INTRODUCTION
As Asia Pacific edges towards becoming a digital-first economy,
organizations across the region are realizing that applications are
fast becoming their most business valuable asset. Yet, at a time when
both the private and public sectors are redefining what a good user
experience means in today’s world, consumer trust continues to wane
as cyberattacks and data breaches rattle the world.

2020’s sharp pivot pushed the door wide open for many “new’s”: new
ways of working, new ways of consumption, new ways of spending
time with loved ones - most of it done online. As governments around
the world rolled out varying stages of lockdown, time spent on
applications jumped by 20 percent in this year’s first quarter alone.
The world abruptly developed a dependency on application-based
services to maintain some sort of normalcy, even as it transitioned into
an unpredictable “new normal”.

1
The Asian Banker, “The race to build super-apps, platforms and communities,” 27 June 2019.
2
App Annie, Intelligence, Global, Average weekly time spent in gaming and non-gaming apps, 1 March -
21 March 2020.

F5 CURVE OF CONVENIENCE 2020/ JULY 2020 3

In this climate, one of F5’s objectives is to help organizations secure users’ privacy
while delivering a product that will ultimately delight and entice consumers. With so
much going on in the world, organizations need reliable information so they can craft
their own approach to the delicate balance between convenience and security. The
Curve of Convenience study, created in collaboration with Kantar, examines a spectrum
of consumer attitudes and behaviors across privacy and convenience. We also delve
into the medium- to long-term implications of what this consumer behavior means for
organizations given current global events and provide recommendations for a more
secure digital journey.

METHODOLOGY
This study was conducted between 25 March to 13 April 2020* as an online survey,
with 4,107 respondents from eight markets: Australia, China, India, Indonesia, Hong
Kong, Japan, Singapore, and Taiwan. Across age groups and gender, the participants
used either a tablet or smartphone in the four weeks leading up to the survey.

NUMBER OF PARTICIPANTS, BY MARKET

700 703 700 400

CHINA INDONESIA INDIA TAIWAN

400 404 400 400

HONG KONG SINGAPORE AUSTRALIA JAPAN

All questions had fixed answer categories and were self-administered. To ensure
anonymity, all respondents were assigned an anonymous alphanumeric identification.

* The study took place during the COVID-19 crisis. While this period is an anomaly, the accelerated use of the internet and applications
reveal attitudes and behaviors that we believe will continue post-pandemic. Source: https://www.economist.com/asia/?page=5

F5 CURVE OF CONVENIENCE 2020/ JULY 2020 4

KEY FINDINGS
Our study shows that application usage has grown across all categories since 2018. Entertainment and social media applications have
experienced the largest surge in growth, at 11 percent and 7 percent, respectively. 95 percent of respondents ranked social media
applications as the most important to everyday life with 66 percent of users tapping into popular applications like Facebook, Twitter or TikTok
multiple times a day.

Mapping the accelerated growth of applications, we dove into the data and uncovered three rudimental shifts in users’ attitudes towards
privacy and convenience that have implications for business:

01 02 03
DATA BREACHES DO DATA SECURITY IS TABLE USERS HAVE CEDED
NOT AFFECT CONSUMER STAKES, USER EXPERIENCE RESPONSIBILITY FOR THEIR
BEHAVIOR IN THE SHORT DEFINES VALUE OF THE BRAND DATA TO BRANDS AND
TERM BUT TRUST WANES TO THE CUSTOMER GOVERNMENTS

F5 CURVE OF CONVENIENCE 2020/ JULY 2020 5

 01
DATA BREACHES DO NOT AFFECT
CONSUMER BEHAVIOR IN THE
SHORT TERM BUT TRUST WANES
Over the years, news about data breaches and cyberattacks
continue to spread around the globe, with each case more severe,
each attack more sophisticated than the last.

These security breaches have sparked customer alarm, but

while organizations scramble to minimize any damage or prevent
further incidents, only 4 percent of participants stopped using
an application as a result of a breach – a far cry from the 72
percent who stated in 2018 they would stop doing business with
organizations who suffered a security breach. In addition, 27
percent of respondents indicated that they were not even aware of
the breaches despite highly publicized attacks that affected both
government organizations or high-use applications.

F5 CURVE OF CONVENIENCE 2020/ JULY 2020 6

 WE ASKED:

However, these widely publicized issues have affected the way consumers
Has your behavior changed after a data breach has occurred
feel about the brands they choose and the industries they trust. The banking exposing your personal data?
industry, the 2018 front runner when it came to user trust, dropped 16-points
over the last two years – following the same downward trajectory as eCommerce
players; and both trailing behind social media applications which have lost users’
trust by 19-points. But despite the drop in confidence in banking applications, the
industry gained 3-points in application usage as financial institutions press on in
the race towards digitization and regulators mandate post-pandemic guidelines
which limit public movement.
72% 96%
This lack of knowledge about security breaches extends from a layperson’s
understanding of the situation. Too often consumers are unaware of the depth
Stated that they will not use an Continued to use an app
of data exposure, and the effect these breaches may have on them. To some app when data is compromised following a high-profile breach
businesses, this may seem like a “safety net” that keeps consumers from leaving
but the tides are changing – as the gap between knowledge and behavior closes,
businesses will see consumers asking difficult questions about data security and
WE LEARNED:
privacy.
As evidenced by the gap in mindset and behavior, consumers
Businesses that want to keep their customers and continue to grow must be are increasingly opting for convenience over security in their
prepared to respond to consumer queries with honesty and specificity. Preparing
pursuit of seamless online experiences.
to address security questions today, will protect your business in the future.

FIGURE 02: Continuation of application usage after a data breach.

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02
DATA SECURITY IS TABLE STAKES, USER
EXPERIENCE DEFINES VALUE OF THE
BRAND TO THE CUSTOMER
Across the board, users rated security as the most important feature
in an application. Banking applications (63 percent) garnered
the highest level of trust, followed by utilities and government
services (57 percent), followed by eCommerce (47 percent). While
banking applications stayed in first place ranking (since 2018), the
importance placed in data security dropped by 2-points.

Application user-friendliness, on the other hand, climbed by

2-points, as did faster load times - indicating that usability is gaining
traction as a key consideration for whether to download or continue
using an application.

F5 CURVE OF CONVENIENCE 2020/ JULY 2020 8

 WE ASKED:
Based on the apps you use, how important are the
following features?

Strong encryption/ 40%

Top features users look for in Security 38%
applications, ranked. User friendliness 20%
of app 22%
As the world increasingly depends on mobile devices and applications, organizations
must continue to prioritize user confidence. Rising demand for frictionless experiences
Fast loading times 13%
between screens 15%
will not cancel the need building in security and privacy safeguards for users. While users
frequently choose frictionless experiences, they still expect the organizations they trust Ability to store personal 10%
to safeguard their data. Organizations that disregard this expectation or expect users to and payment data 10%
safeguard themselves may find themselves on the wrong side of history.
Ability to use QR Code or 8%
biometric features to pay 9%
Recommendations 9%
based on personal
preferences and location
6%
2018 2020

WE LEARNED:
Strong encryption/security still remains as the top most
important feature in an application.

FIGURE 01: Application usage

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03 WE ASKED:
How willing are you to share and/or store your personal data
on applications?

USERS HAVE CEDED RESPONSIBILITY FOR THEIR

DATA TO BRANDS AND GOVERNMENTS
82% 79% 79%
74%
In today’s challenging times, especially in the face of COVID-19, and user corresponding 69%
change in digital habits have left many systems – and users – exposed, pressuring 61% 58%
businesses and governments to fortify their security frameworks and further tighten 50%
regulations and compliance policies. 43%

Across the eight markets, 71 percent of users sign into third party applications using
their social profiles and 62 percent enabled their social network, banking, and dating
applications to track their phone activities, such as their location data or search queries.
In exchange, social posts are much more convenient since locations are automatically CHINA INDIA INDONESIA TAIWAN APAC HONG KONG SINGAPORE AUSTRALIA JAPAN
average
pinned, banks can offer highly relevant, timely promotions and suitable partner matches
can pop up as soon as they are nearby. In short, the applications collect the data, so the
user does not have to do the work; it is all very seamless and convenient.
WE LEARNED:
This willingness to forgo personal information, and as a result, privacy, is further explored
in another one of F5’s commissioned reports, Twimbit’s “Embracing the Open Banking Majority of respondents across Asia Pacific are willing to
Opportunity in Asia-Pacific”, where six in 10 banking customers shared that they are willing share and/or store personal data on applications, 69 percent
to give up their data to get personalized services. of respondents across all markets are willing to share/store
To remain competitive under these circumstances, businesses must consistently deliver personal data on applications, with respondents from China,
unique, high-performing, and secure digital experiences, all while adhering to complex India and Indonesia being the most willing.
compliance and security requirements as well as ensuring a convenient, frictionless, and
user-friendly experience.
FIGURE 03: Willingness to share/ store personal data on application, by market.

F5 CURVE OF CONVENIENCE 2020/ JULY 2020 10

 WE ASKED:
How important is security over convenience to you?

Security Convenience

Japan 35% 65%

THE CURVE OF CONVENIENCE No comparison from 2018

40% 60%
Across Asia Pacific, attitudes toward security are shaped by consumer understanding
Australia 49% 51%
of the importance of data security, culture and consumer trust in government and
businesses. Markets across the region are at different levels of mobile penetration, use 43% 57%
Indonesia
applications differently and value convenience over security for different reasons. For 37% 63%
example, users in Japan, Australia, and Indonesia frequently chose convenience and
45% 55%
seamless customer experiences, while users in China, Hong Kong and Taiwan preferred Singapore
48% 52%
a higher degree of security. Singapore and India, however, sit in the “convenience
chasm”, where they expect both more or less equally. 47% 53%
India
41% 59%
A key finding that businesses should consider is the discrepancy between the value
53% 47%
users place on security versus their actual willingness to forgo security for more China
58% 42%
convenience. The cautious disclosure of personal data in markets such as Australia and
Japan, for example, illustrates that values and behaviors are not necessarily aligned. Hong Kong 53% 47%
58% 42%
What is clear in this study is that convenience and security are non-binary – to win in
Taiwan 57% 43%
a post-pandemic world, businesses must step up their digital transformation efforts
and create seamless experiences that also seek to protect customers. Governments, No comparison from 2018
businesses and consumers should not be schooled by data breaches, instead they must
proactively choose to blend convenience, consumer education and security to create 2020 2018
experiences that allow consumers to access necessary goods and services, entertain
friends and family and make educated choices about how much data they should provide WE LEARNED:
to gain the experience they crave.
Markets display varying emphasis on convenience and
security across Asia Pacific, highlighting how each market is
on a different stage of their “security-convenience” journey.

FIGURE 04: Percentage of respondents who chose convenience, by market.

F5 CURVE OF CONVENIENCE 2020/ JULY 2020 11

SUMMARY
As you have seen from the key findings in our report, circumstances, innovation,
and competition have spurred an acute rise in the number of customer WE ASKED:
engagement touchpoints available to brands these days. This same growth has Who do you think should be responsible to protect your data
nurtured the expectation that a brand’s application, mobile site, desktop, and privacy?
even offline platforms need to be interconnected seamlessly, and that privacy
and security measures need to be highly present yet decidedly invisible.

Businesses
25% 43%
Government
Consumers

RELIANCE ON BRANDS FOR DATA PROTECTION 32%

This is further evidenced by the 43 percent of respondents in our survey who

put the onus on platforms to keep their data safe (as opposed to the 32 percent
4
who said it is the government’s responsibility or 25 percent who claim it is their p
WE LEARNED:
own responsibility). At a time when customer satisfaction fuels engagement th
Consumers in Asia Pacific assign responsibility of data
and loyalty – and as a result, business growth – it is more important than ever
that businesses consistently deliver both frictionless and secure experiences at security to businesses, followed by the government.
all times. Anything short of this may be detrimental to businesses – both from a
brand reputation and revenue growth perspective.

FIGURE 05: Responsibility for data security

F5 CURVE OF CONVENIENCE 2020/ JULY 2020 12

IMPLICATIONS: NEW OPPORTUNITIES
FOR A NEW NORMAL
The pandemic has affected businesses in a way that few could have prepared
for. Many have had to shift their organization overnight and pivot their
resources into crisis-mode; leaders were put to the test and expected to
prepare for the lasting effects of a sudden shakeup. As the internet became
the main (and, in many cases, only) conduit for users’ interactions with the
outside world, the surge in online transactions has led to a marked increase in
security vulnerabilities. This left businesses juggling between the accelerated
speed whilst stepping up their vigilance against unknown assailants, all amidst
indefinite uncertainty.

With that in mind, we expect to see a growing number of organizations

digitalizing various business functions, including customer relations, employee
engagement, and supply chain management.

In the face of the biggest economic storm the world has seen in the last
century, businesses will need to anchor themselves in the right resources, and
that includes the right people, processes, and technology.

F5 CURVE OF CONVENIENCE 2020/ JULY 2020 13

 LOOKING FORWARD: FINDING THE
RIGHT DIGITAL PARTNER
A brand’s application sits at the heart of any digital-first organization, so
delivering a great one is paramount.

Our teams around the world have listened to our customers’ challenges,
which have led us to build expertise in these core areas that ultimately
enables our customers to deliver unique, high-performing, and secure
digital experiences. They are:

Complex compliance and security requirements

The top two goals in application development are speed to market

and optimal end-customer experience, and it is commonly believed
that compliance and security structures to slow down both. Given
that applications are particularly attractive and susceptible to attacks,
protecting them becomes critical to business success. Read more here

Reducing tool sprawl and thus operational complexity and cost

Each new application architecture introduces dozens of new tools. Stitching
together best-of-breed solutions places a burden on our customers and
increases their overall costs. Businesses need to streamline and prevent the
tool sprawl early. Read more here

F5 CURVE OF CONVENIENCE 2020/ JULY 2020 14

Building visibility into application portfolio

Many customers do not know how many applications they have or

the extent of their security postures nor the environments in which
their applications are running. So being able to monitor end-to-end
application SLAs around availability and response times is critical
in ensuring that security and uptime are not compromised for
frictionless user experience. Read more here

Infrastructure flexibility

Businesses have long been locked into one infrastructure

environment or another and now want to move applications from
one environment to another. The ecosystem is now hungry for
a multi-cloud partner to help them break this cycle of lock-in to
enable speed and agility. Click here to find out more

Find out how F5 can help businesses power

and protect their applications here

F5 CURVE OF CONVENIENCE 2020/ JULY 2020 15

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