Large technology companies will experience the same collapse in reputation as banks have endured in recent years unless they rapidly change their policy approach, business leaders have cautioned.

Their warning was directed at the influential heads of technology companies, such as those in Silicon Valley, who were told they needed to recognise that self-regulation would not be sufficient to stave off public alarm about issues such as privacy.

“Self-regulation, no matter what you do, is just not going to be good enough [for tech companies],” said Paul Achleitner, chairman of the supervisory board of Deutsche Bank. Addressing the Davos economic forum, he pointed out that a self-regulatory approach had been previously employed by banks — but notably failed to quell the political backlash against their over-reach.