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CONSUMERS AND DATA SHARING IN FINANCIAL SERVICES - UK - FEBRUARY 2018

Published By :

Mintel

Published Date : Feb 2018

Category :

Insurance

No. of Pages : N/A

Open Banking has often been described as ‘bad news’ for the UK’s big banks. However, consumers are far more likely to share financial data from other providers with their main bank than they are to give rival banks access to their information. This could give banks an opportunity to improve engagement with their existing customer bases, setting them further apart from the competition

Table of contents
OVERVIEW
What you need to know
Scope of this Report
EXECUTIVE SUMMARY
The market
Consumers have extensive financial portfolios
Figure 1: Repertoire of ownership of selected financial services products, October 2017
Companies and brands
FinTechs lead the way
HSBC trials Open Banking beta
Six banks given an extension by the regulator
The consumer
Consumers are most likely to share data with their main bank
Figure 2: Willingness to share data with different types of providers/companies, October 2017
PayPal and Amazon most likely tech/online firms to gain access to financial data
Figure 3: Technology/online companies that consumers would be willing to share financial data with, October 2017
Only one in four potential data sharers willing to share via smartphones
Figure 4: Willingness to share financial data when using different devices, October 2017
Consumers are most likely to share data to save time and money
Figure 5: Things that would encourage consumers to share financial data, October 2017
Big banks hold the advantage when it comes to aggregation
Figure 6: Account aggregation preferences, October 2017
Aggregation can help consumers to become more savvy
Figure 7: The appeal of account aggregation, October 2017
Consumers favour occasional data sharing
Figure 8: Attitudes towards sharing data permanently vs occasionally, October 2017
What we think
ISSUES AND INSIGHTS
The big banks still hold the advantage
The facts
The implications
Security concerns are likely to hamper the success of Open Banking
The facts
The implications
THE MARKET – WHAT YOU NEED TO KNOW
Consumers have extensive financial portfolios
Majority are happy with the status quo
GDPR will emphasise the value of data sharing
MARKET OVERVIEW
Consumers have extensive financial portfolios
Figure 9: Repertoire of ownership of selected financial services products, October 2017
Majority are happy with the status quo
Figure 10: Current account holders’ switching intentions, June 2017
Current account acts as the gateway
Figure 11: Financial product ownership and cross-sales, June 2017
GDPR will emphasise the value of data sharing
COMPANIES AND BRANDS – WHAT YOU NEED TO KNOW
Starling first to release Open APIs
Bud looks to partner rather than compete
HSBC trials Open Banking beta
Six banks given an extension by the regulator
COMPETITIVE STRATEGIES
Open Banking
FinTechs lead the way
High street banks prepare their strategies
Insurers and data sharing
THE CONSUMER – WHAT YOU NEED TO KNOW
Consumers are most likely to share data with their main bank
PayPal and Amazon most likely tech/online firms to gain access to financial data
Only one in four potential data sharers willing to share via smartphones
Consumers are most likely to share data to save time and money
Big banks hold the advantage when it comes to aggregation
Consumers favour occasional data sharing
SHARING FINANCIAL DATA WITH DIFFERENT PROVIDERS
Consumers are most likely to share data with their main bank
Figure 12: Willingness to share data with different types of providers/companies, October 2017
Security concerns remain a key barrier
Two thirds of consumers are open to sharing data
Figure 13: Repertoire of willingness to share data with different types of providers/companies, October 2017
Open Banking can help IFAs and insurers to interact with Millennials
Figure 14: Willingness to share data with different types of providers/companies, by generation, October 2017
SHARING FINANCIAL DATA WITH TECHNOLOGY FIRMS
PayPal and Amazon most likely tech/online firms to gain access to financial data
Figure 15: Technology/online companies that consumers would be willing to share financial data with, October 2017
DEVICE PREFERENCES
Smartphone security is still a stumbling block
Only one in four potential data sharers willing to share via smartphones
Figure 16: Willingness to share financial data when using different devices, October 2017
Over-55s even more reluctant to share data via smartphones
Figure 17: Willingness to share financial data when using different devices, by age, October 2017
Mobile data sharers want aggregation, simplifications and recommendations
Figure 18: Things that would encourage consumers to share financial data, by willingness to share financial data when using a smartphone, October 2017
WAYS TO ENCOURAGE DATA SHARING
Consumers are most likely to share data to save time and money
Figure 19: Things that would encourage consumers to share financial data, October 2017
Convenience is key for Millennials
Figure 20: Things that would encourage consumers to share financial data, by generation, October 2017
Consumers who want aggregation would share data with different banks…
…whilst those who want personalised offers would give access to non-banking brands
ACCOUNT AGGREGATION PREFERENCES
Big banks hold the advantage when it comes to aggregation
Third-party aggregators must differentiate
Figure 21: Account aggregation preferences, October 2017
THE APPEAL OF ACCOUNT AGGREGATION
Aggregation can help consumers to become more efficient…
…and more financially prepared
Figure 22: The appeal of account aggregation, October 2017
ATTITUDES TOWARDS SHARING FINANCIAL DATA
Only 9% would share data with a brand they don’t already use
Figure 23: Attitudes towards sharing financial data with companies, October 2017
Consumers want providers to keep them informed
Figure 24: Attitudes towards receiving updates about financial data usage, October 2017
Only a quarter of consumers trust providers to handle their data safely
Figure 25: Attitudes towards data security, October 2017
Consumers favour occasional data sharing
Figure 26: Attitudes towards sharing data permanently vs occasionally, October 2017
Consumers want the right to be forgotten
Figure 27: Attitudes towards erasing data, October 2017
The advantages of portability are yet to be clear
Figure 28: Attitudes towards data portability, October 2017
APPENDIX – DATA SOURCES, ABBREVIATIONS AND SUPPORTING INFORMATION
Abbreviations
Consumer research methodology

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