An analysis of privacy regulations and user concerns of finance mobile applications

Omar Haggag, Alessandro Pedace, Shidong Pan, John C. Grundy

Abstract: Context:Financial applications handle sensitive data, including personal details, banking information, and transaction histories, making them prime targets for cyber-attacks. As privacy concerns grow, users and regulators are increasingly analyzing how these apps manage data in different legal contexts.Objective:This study examines user privacy concerns and assesses the impact of privacy regulations on mobile financial applications in Germany, Australia, and the United States. It aims to evaluate how laws such as the GDPR in the EU, the Privacy Act in Australia, and various U.S. state and federal laws shape app privacy policies. Additionally, the study explores the readability and accessibility of privacy policies.Methods:User reviews from app stores were analyzed to identify recurring privacy issues and regional differences in concerns. The study also reviewed privacy laws in the EU, Australia, and the U.S. to assess their influence on financial app policies. To analyze the user-friendliness of privacy documents, a readability analysis was conducted using the Flesch Reading Ease score and estimated reading times.Results:The findings revealed that users are highly concerned about the handling of their data, with significant demand for greater transparency and more robust privacy protections. Regional differences in privacy concerns were identified, with varying levels of engagement with privacy issues in each region. The study also found significant discrepancies in the readability of privacy policies, with many policies proving too complex for the average user to understand.Conclusion:The study concludes that financial app developers need to simplify their privacy policies and improve transparency to build user trust. It also emphasizes the need for stronger regulatory frameworks to address evolving privacy challenges. Recommendations are made for developers and policymakers to enhance data protection and improve user experience in financial services.