UK consumers trust banks over third-party providers, research finds

Research from management consultant company Accenture has found UK consumers are reluctant to share personal data with third-party providers, creating a major opportunity for banks when it comes to building trust.

The research surveyed over 2,000 consumers and found 69 per cent would not share their banking data with third-party providers such as social media companies, tech businesses or online retailers.

Low

Over 50 per cent of UK consumers said they will not change their banking habits and embrace open banking. This comes six months before the introduction of the Revised Payments Service Directive (PSD2), which will see consumers being able to share their banking data with banks and third parties.

Trust in social media businesses was found to be particularly low, with 93 per cent saying they are reluctant to share data with these companies. 73 per cent are reluctant to share personal finance information with retail companies.

The research found UK consumers would trust their bank over third-party providers. 59 per cent say they would only trust their own bank with their account information for services such as finding a better mortgage rate or savings account.

Advantage

Commenting on the research, Accenture Payment Services Practice in Europe Managing DirectorJeremy Light, a managing director at Accenture who leads the company’s Payment Services Practice in Europe, said:  “Open banking has the potential to transform consumers’ relationships with financial products, but it hinges on consumers’ willingness to embrace it.”

He added: “Until new entrants to the financial services sector can earn consumers’ trust, banks can draw on their extensive heritage to secure an important early advantage.”