Andrew Birmingham, editor of business site www.which-50, says there’s increasing evidence the big tech players want to offer mortgages and insurance and supposedly we’re more than happy they pinch our data if it means a better deal…
More evidence, as if any were required that consumers increasingly expect Google, Facebook and other global digital players to move int financial services.
This latest research comes from tech giant Fujistu and is based on a survey of 7000 European consumers.
As we have reported before European bankers have proven more conservative around digital disruption than there global peers which makes the research all the more interesting.
According to the study, a fifth of respondents said they would buy banking or insurance services from potential disrupters like Google, Amazon or Facebook.
The study notes, “While established firms have successfully held off initial competition from digital disruptors, the ‘Uberization’ of the financial services sector remains a persistent threat. Given the major role up-to-date technology plays in switching, it’s possible challenger brands could unleash innovative services that attract large volumes of consumers.
“There’s no doubt European consumers are open to radical options: a fifth (19 per cent) would buy banking or insurance services from companies like Facebook, Google, Amazon or Apple. However, most consumers feel there’s enough choice in the current marketplace and can’t perceive a need for new players, with two-thirds (63 per cent) stating there are enough providers available. ”
They say that while the relatively low level of interest in new entrants doesn’t hugely threaten share of wallet today, the warning signs are there. “It’s important to remember that consumers are very often not aware of a need until they’re offered a new service or capability. There was no proactive demand for contactless payments, but these have now been adopted by almost half (44 per cent) of consumers. ”
“Today’s customers are no longer guarded,” said Francois Fleutiaux, Senior Vice President and Head of Sales, EMEIA, Fujitsu. “When it makes interaction more convenient they are willing to embrace innovation. They may not know where they need it until it is offered, but this is where technology comes to the fore – it is the engine that is driving consumer expectations forward and the financial services sector has to live up to this new pace of change.”
The studies authors reveal that more than a third (37 per cent of consumers) say they would leave their provider if don’t keep up with technology.
“Consumers are showing they are open to innovative services to make their lives easier, with 32 per cent already embracing mobile device payments, while 22 per cent have adopted wearable technologies and 20 per cent crypto-currencies, the latter driven by Eastern Europe usage where 44 per cent say they use the technology.”
The study also suggests that consumers are becoming more tolerant of how their data is used, so long as there’s a pay off.
Almost everybody surveyed (97 per cent) said they were happy for banks or insurers to use their data to offer them a wider range of services; which the authors describe as a huge shift in consumer mindset.
- Almost three in five (59 per cent) would be happy for their bank or insurer to use their data to lower their mortgage premium
- Nearly half (47 per cent) of consumers would allow banks or insurers to use their data to recommend relevant products and services
- More than two in five (44 per cent ) want their data used by banks or insurers to keep them informed of their spending habits and offer relevant advice
- More than a third (36 per cent) would like their data used by banks or insurers to amend their credit rating
According to Fleutiaux, “For consumers, digital simply means a new way to communicate whether that be their bank, insurer or their favourite retailer – in whatever way suits them. ‘Traditional’ methods and face-to-face interaction still have a place in modern-day banking and insurance. Providers that will be successful will be the ones who modernise their back office to integrate these various channels to create ‘banks and insurers of the future’ that provide their customers with all options.”
Leading Australian market research data brand, RDA Research, provides actionable consumer intelligence to help businesses inform decision making and growth strategies. RDA Research wanted to make its unique consumer data available for addressable digital targeting and required a data onboarding partner to help activate their data in an online environment.
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