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Home>Accenture Research Finds Lack of Trust in Third-Party Providers Creates Major Opportunity for Banks as Open Banking Set to Roll Out Across Europe

Accenture Research Finds Lack of Trust in Third-Party Providers Creates Major Opportunity for Banks as Open Banking Set to Roll Out Across Europe

Accenture Research Finds Lack of Trust in Third-Party Providers Creates Major Opportunity for Banks as Open Banking Set to Roll Out Across Europe

10/02/2017

Accenture Research Finds Lack of Trust in Third-Party Providers Creates Major Opportunity for Banks as Open Banking Set to Roll Out Across Europe

Less than six months before PSD2 implementation , U.K. consumers reluctant to trust third-party providers with their bank details

Less than six months before the Revised Payments Service Directive (PSD2) makes open banking a reality across Europe, research from Accenture (NYSE:ACN) has found that two-thirds of consumers in the U.K. said they won’t share their personal financial data with third-party providers, giving banks the opportunity to benefit from the trust they have built with their customers over the years.

One of the drivers for open banking in the U.K., PSD2 will enable consumers to share their financial data securely with both banks and third parties, making it possible to more easily transfer funds, compare products and manage their accounts without their bank’s involvement.

Surveying more than 2,000 U.K. consumers, Accenture Research found that online retailers, tech firms and social-media companies face an uphill battle to expand into the financial services sector, with 69 percent of consumers saying they would not share their bank account information with these third-party providers. In fact, more than half (53 percent) of the consumers said they will never change their existing banking habits and adopt open banking.

The research suggests that retail and social-media companies did not fare well with consumers, with 73 percent of consumers reluctant to share personal financial information with retailers and 93 percent reluctant to share that information with social-media companies.

Trust in online platforms and social-media companies as providers of payments services is also low, with the majority of consumers saying they would be unwilling to initiate a payment through online platforms (58 percent) and social-media companies (82 percent). This could pose a particular challenge for social media companies building marketplace and commerce platforms. Meanwhile, only one-quarter (26 percent) of consumers said they trust online payment companies to make and schedule their payments.

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

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