UK consumers demand more innovating banking
They're also cautious about sharing their data
Research from NCR Corporation has revealed that despite the banking industry's efforts to embrace innovative, data-driven services, UK consumers remain cautious about sharing their data. These findings are particularly striking in the face of PSD2 (Second Payment Services Directive), which will open up banks' data and infrastructure to a wider ecosystem.
A survey of more than 1,000 UK adults ages 16 and older found that nearly half of respondents (47%) with personal bank accounts would only feel comfortable with banks collecting the bare minimum of data required to run their accounts. At the same time, 91% of respondents agreed that banking services should be innovative and modern, revealing a disconnect between consumers' lack of trust in sharing data, and the desire for more innovative services from their banks.
The research identified three key findings which highlight the growing consumer demand for personalized service that makes banking easier and more relevant. About half of the survey respondents (49%) were interested in banking loyalty programs in partnership with retailers requiring third-party data sharing. 46% were open to financial advice services that keep track of their spending information to help save money, while 39% would consider using a service prompting them when an important personal event, such as a loved one's birthday or an anniversary, is approaching.
The survey also showed that security remains a trust factor between the consumer and their bank. It needs to be not only robust but also a seamless part of the consumer-bank interaction. More than half of respondents (58%) would be interested in using biometric authentication methods like fingerprint, iris, or voice authentication. For 52% of them the primary appeal is that they feel it would make banking more secure. But the interfaces used to connect these to the banking environment come from third parties. Most strikingly, a third of respondents (33%) explicitly stated they either currently conduct banking transactions using a digital personal assistant like Amazon's Alexa or Apple's Siri, or would like to in future. The use of digital personal assistants could require hosting customer data on third-party infrastructure.
NCR works with banks on a daily basis to help them provide seamless omni-channel services that put customers at the heart of the banking experience by bringing together the various processes involved in acquiring, authorizing and routing payments, enabling them to quickly introduce new services with the highest security standards.
"As consumers increasingly look beyond traditional banking services, it is important for banks to reassure consumers that their personal data will be protected and safe," said Joe Gallagher, vice president & general manager of Self Service & Branch at NCR Corporation. "It is vital that consumer data will be used in a way that they are happy with, especially as third-party technology increasingly plays a role in the banking innovations they expect."
Sources: NCR / The Marketing Factbook.
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