Banks and insurers are trusted with more personal data than most businesses. Harnessing personal data is a huge opportunity, but data security is always a major concern. The survey shows that there is appetite from consumers for banks and insurance providers to accept the burden of added risk, or risk losing customers.
Personal data has been called the ‘new oil’. It’s the key to personalized marketing which drives better customer experiences and increases loyalty. 59% of consumers we surveyed said customer experience keeps them loyal to their bank or insurer. Banks and insurers are privileged with access to more personal data than most other organizations. The key is to use it, responsibly.
Yes, this privilege comes with a risk. Data security is a constant concern. Almost two-thirds (59%) of our survey would switch bank or insurer if the provider suffered a security breach.
The dilemma for the consumer lies in balancing trust, convenience and value. Consumers understand the risk, but are still being prepared to share their data for some kind of return – usually in the form of discounts, recommendations or other offers.
It seems that we believe banks and insurance providers are more deserving of consumers' trust than other types of business. A third (36%) of consumers1 believes banks and insurers will protect their personal data. As one retail banking decision-maker told us, "Customers feel comfortable sharing more data because of tighter rules and regulations. Although in some ways it’s a burden for the bank, it gives the customer a [greater] level of control and comfort."
Despite the risks, it seems that banks and insurance providers are using customer data to drive the pace of change, and consumers are willing to let them, where it adds value.
1 Fujitsu, DataHeaven or DataGeddon?, 2013
I won’t say it’s easy [but] customers are moving gradually onto providing more and more data.
Once a customer gets used to a particular channel which is in their opinion very convenient, they will not want to go back.