Insights on Sharing: Financial Consumers and Their Data

by Craig Beattie,  Craig Weber, November 7, 2014
Global

Abstract

A world of possibility is emerging for financial institutions seeking to leverage consumer data. But consumers will be reluctant to share without a tangible quid pro quo.

New research from Celent shows how consumer attitudes toward their data are changing, and key considerations for financial institutions who want to leverage that data.

“Consumers are willing to share data, in a well-defined, logical way,” says Senior Analyst Craig Beattie, who along with Celent’s CEO, Craig Weber, coauthored the report. “But they are sensitive to the motives behind data sharing programs, and they expect a transparent quid pro quo before they will give up the goods.”

“Of course there are privacy concerns,” says Craig Weber. “But consumers in our research showed a surprising level of trust in banks and insurance companies. You get the sense they are waiting for someone to explain the consumer benefits of data sharing, in practical terms. We think the first generation of firms that does this well will generate immediate leverage.”

The report notes that a high percentage of consumers assume their personal data are already being used by banks and insurers, which lends credence to the notion that increased use is possible.

The report is based on a survey of 2,648 consumers in the US and the UK that focused on consumers’ willingness to share data, the specific areas where a data sharing value proposition will generate loyalty, and how insurers should approach projects seeking shared data.

Celent is a research and advisory firm dedicated to helping financial institutions formulate comprehensive business and technology strategies. Celent publishes reports identifying trends and best practices in financial services technology and conducts consulting engagements for financial institutions looking to use technology to enhance existing business processes or launch new business strategies. With a team of internationally based analysts, Celent is uniquely positioned to offer strategic advice and market insights on a global basis. Celent is a member of the Oliver Wyman Group, which is a wholly-owned operating unit of Marsh & McLennan Companies [NYSE: MMC].

Media Contacts

North America
Michele Pace
mpace@celent.com
Tel: +1 212 345 1366

Europe (London)
Chris Williams
cwilliams@celent.com
Tel: +44 (0)782 448 3336

Asia (Tokyo)
Yumi Nagaoka
ynagaoka@celent.com
Tel.: +81 3 3500 3023

Table of Contents

Executive Summary

1

 

Key Research Questions

1

 

Summary

1

 

Beginning the Data-Driven Journey

1

Introduction

3

 

Key Research Questions

3

 

Approach

3

When It Comes to Consumers and Data Sharing, A World of Possibility Is Emerging

4

 

Seeking the Best Data Sharers

5

 

They Think You’re Using It Anyway

6

Trust Levels Vary, But Banks and Insurers Are Positioned Relatively Well

8

 

Drilling Down on Trust

8

Data Collection Is Increasing But Perhaps Just Short of a Useful, Critical Mass

12

 

The Age Factor

14

Customers Expect a Tangible Quid Pro Quo

15

Beginning the Journey

17

Appendix

18

 

Survey Structure and Method

18

 

Overview of Respondents

18

 

Results of Regression Tests

18

 

Selected Consumer Comments

21

 

Survey Questions

24

Leveraging Celent’s Expertise

27

 

Support for Financial Institutions

27

 

Support for Vendors

27

Related Celent Research

28

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