News

FIs face disconnect in consumer desires for innovation, security

December 1, 2017

Despite the banking industry's efforts to embrace innovation, consumers in the U.K. remain wary about sharing their data, according to a recent survey by NCR Corp.

The survey of more than 1,000 U.K. participants age 16 and older with personal bank accounts found that nearly half (47 percent) would feel comfortable only with banks collecting the bare minimum of data required to run their accounts.

At the same time, 91 percent of respondents agreed that banking services should be innovative and modern, revealing a disconnect between what consumers want and what they're willing to grant in exchange for it.

Findings from the research highlight the growing consumer demand for personalized service:

• 49 percent were interested in loyalty programs that partner their bank with retailers (which would require third-party data sharing).
• 46 percent were open to financial advice services that track their spending information to help them save money.
• 39 percent would consider using a service that reminds them when an important personal event — for instance, a loved one's birthday or an anniversary — is approaching.

By the same token:

• 52 percent thought biometric ID would make banking more secure, though the interfaces used come from third parties.
• 33 percent currently conduct banking transactions using a digital personal assistant (such as  Siri or Alexa), or would like to in the future, although these also can require third-party infrastructure to host customer data.

"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," Joe Gallagher, vice president and general manager of self-service and branch at NCR, said in the release. "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."