Nearly six in ten consumers would be willing to share significant personal information, such as location data and lifestyle information, with their bank and insurer in exchange for lower pricing on products and services, according to a new report from Accenture.
“We are still in the early stages of Europe’s burgeoning Open Banking revolution, and I expect consumer attitudes there to evolve as banks invest in and offer more relevant services.”
Accenture’s global Financial Services Consumer Study, based on a survey of 47,000 consumers in 28 markets, found that more than half of consumers would share that data for benefits including more-rapid loan approvals, discounts on gym memberships and personalized offers based on current location.
At the same time, however, consumers believe that privacy is paramount, with three quarters (75 percent) saying they are very cautious about the privacy of their personal data. In fact, data security breaches were the second-biggest concern for consumers, behind only increasing costs, when asked what would make them leave their bank or insurer.
“Consumers share personal data to make their lives easier, or more interconnected, and this is extending to how we manage our personal finances,” said Piercarlo Gera, a senior managing director in Accenture’s Financial Services practice. “Although consumers want banks and insurers to use their data to play an active role in improving their lives, banks should tread cautiously, ensuring they fully understand their customers by providing relevant, in-the-moment offers while continuing to safeguard consumer data. This is a call for banks and insurers to see their customers as people with needs beyond their bank accounts and premiums.”
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Consumers showed strong support for personalized insurance premiums, with 64 percent interested in receiving adjusted car insurance premiums based on safe driving and 52 percent in exchange for life insurance premiums tied to a healthy lifestyle. Four in five consumers (79 percent) would provide personal data, including income, location and lifestyle habits, to their insurer if they believe it would help reduce the possibility of injury or loss.
In banking, 81 percent of consumers would be willing to share income, location and lifestyle habit data for rapid loan approval, and 76 percent would do so to receive personalized offers based on their location, such as discounts from a retailer. Half (51 percent) of consumers want their bank to provide updates on how much money they have until their next pay day, and 57 percent want savings tips based on their spending habits.
“Financial firms have a huge responsibility to maintain their role as trusted custodians of data privacy,” said Bruce Holley, a senior managing director in Accenture’s Financial Services practice in North America. “Banks and insurers that don’t seize the opportunity to build on this trust and improve customer experiences risk becoming lost in the plumbing of payments or compensating claims.”
Appetite for data sharing differs around the world
Appetite for sharing significant personal data with financial firms was highest in China, with 67 percent of consumers there willing to share more data for personalized services. Half (50 percent) of consumers in the US said they were willing to share more data for personalized services, and in Europe — where the General Data Protection Regulation took effect in May — consumers were more skeptical. For instance, only 40 percent of consumers in both the UK and Germany said they would be willing to share more data with banks and insurers in return for personalized services.
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“In Europe, where open banking regulations compel banks to share data with third parties, customers are much more reluctant to share their data,” Gera said. “We are still in the early stages of Europe’s burgeoning Open Banking revolution, and I expect consumer attitudes there to evolve as banks invest in and offer more relevant services.”