Expectations and opportunities in using bank consumer personal data

A top business priority for banks today is to have a complete 360 degree view of customers through the collection and use of personal data. To effectively manage data, it helps to know how consumers expect their information to be used. Armed with this knowledge, banks can identify opportunities for new value-add services that drive revenue and competitive advantage.

CGI commissioned a survey in 2015 with Research Now, one of the world’s leading digital data collection firms, to gauge the preferences of financial consumers across a wide range of topics, including the use of personal data by banks. We surveyed 1,452 financial consumers across the U.S., Canada, four European countries (the UK, France, Germany and Sweden) and Australia.

Some key survey findings on the use of customer data follow.

• Over 80% of consumers are open to banks using their basic information for improved services or products.
• Consumers are fairly open to sharing family/household information (63%), contract data (60%), and full transaction data (50%) with their banks.
• Consumers do not want banks having access to their social media data, with 77% globally saying no. However, respondents under 40 are 10% more likely to want to share their social data than those over 40.
• Consumers overwhelmingly do not want their data shared with selected third parties.
• When comparing bank types, users of online banks are marginally more likely to share their social data; however, they are the least likely to share any other types of data.
• There is more openness to sharing data in Europe than in North America.

There is definitely concern among consumers with allowing anyone and everyone to use their personal data. However, a majority would be open to banks using basic, transactional, contract and household data to drive improved services. What opportunities do these findings present?

First, while consumers are open to banks using their personal information, data protection remains a top concern. In our survey, consumers ranked the protection of their money and personal data as their most desired bank service (91%). They’re aware that, in today’s digital world, fraud is increasing, and they want more protection from their banks. Many (25%) would pay a premium for this.

While protection is an essential service banks already provide, many aren’t packaging and marketing it as a value-add service. As consumers become more concerned about cybersecurity, banks have an opportunity to expand and promote their current protection services, turning this traditional overheard area into a new revenue stream. In addition, expanding protection could become a valuable way to increase customer loyalty, giving banks a competitive edge over new non-bank market players.

Second, leading banks are leveraging all of the customer data they have to move beyond storing and processing money to becoming valued financial advisors. Our 2014 bank consumer survey revealed that only 7% of consumers go to their bank for financial advice. Most rely on themselves, friends or family. This low percentage represents a significant opportunity for banks.

Wealth-building advice is among the top five consumer wants in our 2015 survey. Banks that use data to predict when customers need advice and generate offers that preempt self-service will become not only trusted advisors, but trusted gateways to third parties, driving new revenue streams and customer loyalty.

Using the right consumer data in the right way is opening the door not only to new value-add data protection and financial advice services, but also other value-add services such as rewards, personalization and cash management. Learn more about these opportunities by requesting a copy of our 2015 survey, Financial Consumer Demand for Tomorrow's Digital Bank, or by contacting one of our bank experts at info@cgi.com.