It was found that financial services consumers are more prepared than ever to share personal data with institutions offering them offers and propositions tailored to their needs. In 2017, a large survey was done to understand what consumers value most and how they communicate with financial providers. In 2018 an even larger survey covering 28 markets in the insurance and banking industries was done in North America, Africa, Middle East, Latin America, Europe and Asia-Pacific.
The personal finance market attracts a huge portion of shared data
This survey showed that 40% of UK customers, 50% of the US and 67% of the population in China is ready to share personal data. Consumers in the insurance industry are the keenest as everyone is seeking reduced loss or injury. Half of the population seek life insurance while two-thirds are looking at personal car insurance.
Consumers share personal data to be more interconnected, to make their lives easier and simplified, which is an extension of how they manage finances. Consumers want insurers like independent financial advisor Marlborough and banks to use data actively to improve their lives. In the Yahoo finance article on the banking industry, 81% of consumers are ready to share lifestyle habit data, location and income for rapid loan approval. And 76% of consumers are willing to share personal data to receive personalised promotional offers.
Financial institution responsibility
Institutions like the independent financial advisor Marlborough advise that financial institutions have a responsibility to continue to maintain their role as data custodian. Whilst entrusting their personal data to financial institutions and insurers, consumers are still cautious about privacy. When asked what would cause them to leave their current insurer or bank, consumers responded with their two major concerns. The largest concern that consumers have is increasing costs, with breach of data security their second concern.
In the increasingly digital economy, consumers should use, for example, independent financial advice through Chilvester where customer security and trust are paramount. Consumers are trusting insurers and banks to maintain a high level of protection for the sensitive data they are charged to protect.
They should deliver a highly convenient digital experience with relevant personalised offers and benefits without breach of trust and data security. Banks and insurers are always welcomed to provide updates and offers.