Two-thirds (66%) of Australian consumers are unwilling to share their sensitive financial data with non-banking organisations, according to a survey conducted by technology firm Accenture.
The survey outcomes highlights difficulties fintech firms and other digital giants looking to foray into financial sector may face grabbing market share from the established financial firms.
The survey, polled 2,000 people, also found that younger consumers are far more eager to share their data with third-party providers.
With the onset of Open Banking regulations in 2019, consumers will be able to grant third parties access to their financial data, which will enable them to compare products and services more easily. The move is expected to pose challenge to the established banks.
Accenture said that the results are similar to survey it conducted in the UK last year in which 69% of Brits expressed strong reservations against sharing their bank account information with third parties.
Nearly 84% of the Australian banks’ customers trust only their own bank with their financial data even if a third-party provider suppose to provide added benefits to secure access to the information, compared with 59% of Britons consumers who said the same.
Alex Trott, who leads Accenture’s banking practice in Australia and New Zealand, said: “Tech firms, online retailers and fintechs currently face an uphill battle competing with Australia’s traditional banks for customers due to the banks’ stronger trust connection with their clients.
“But an emerging generation of consumers is much more receptive to Open Banking, and as their understanding and awareness of Open Banking innovations grow, it could have a big impact on the financial sector. Traditional banks cannot afford to rest on their laurels, as these new rules open the door to new competitors targeting young Australians.”
The reports said that 83% of consumers are either unaware of or unsure about Open Banking, whereas millennials and Gen Zers (those younger than 35) were 4.5 times more likely than baby boomers (those 55 and older) — 31% vs. 7% — to say they are aware of Open Banking.
Additionally, the younger consumers were also eight times more likely than baby boomers to say they would use social media or an online merchant to initiate payment transactions, 58% of millennials and Gen Zers, compared with just 7% of baby boomers.
Accenture conducted an online survey in May this year.