Privacy vs Perks: how much are consumers willing to share?
A recent study by Accenture shows that 6 in 10 consumers are willing to share more of their personal data with financial institutions in exchange for improved services and better deals.
Accenture’s global Financial Services Consumer Study surveyed 47,000 banking and insurance customers from across the globe. Despite the growing concerns about data privacy and breaches, a staggering 81% of banking customers are happy to disclose more of their spending habits, location and lifestyle data, and income for a faster loan approval. 76% are willing to do so to receive personalised offers from retailers and discounts.
Despite the consumer’s willingness to provide more personal data, there are significant geographical differences. China came out top, with 67% of consumers open to share personal data in return for personalised financial services. Surprisingly, the UK and Germany were the lowest, with only 40% of consumers willing to share more data with their banks and insurers. This is particularly unexpected considering PSD2 and the Open Banking movement.
Despite the results of the study, it is important that FIs remain trusted custodians of data privacy and use it as an opportunity to build on this trust and improve customer experience while maintaining data security.