Conducted by global professional services company Accenture in May, the survey was conducted to garner opinions on open banking rules before the Australian Government puts them into operation.
The survey found that younger consumers were more willing to share their financial data with third-party providers, with 31% answering in the positive compared to 7% of older people.
Under the consumer data right, which is to be introduced soon, Australians will be able to safely share their personal data with trusted service providers.
The Accenture survey found that two-thirds (68%) of consumers were concerned about how banks managed their money and financial data, following the revelations at the Royal Commission into the financial services industry, which is ongoing.
However, it also found that 84% would trust only their own bank with their financial data even if a third-party provider were to offer added benefits to secure access to the information, compared with 59% of British consumers who said the same in a survey conducted in 2017.
The biggest concern with open banking centred around the security and privacy of financial data, with nearly two-thirds (64%) of respondents citing that as the main obstacle to sharing their financial data with third parties.
A majority (53%) also said they did not understand the potential benefits of open banking sufficiently well to grant third-party providers access to their data, while almost half (47%) said they did not think open banking would provide enough value to change their banking behaviour.
“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,” said Alex Trott, who leads Accenture’s Banking practice in Australia and New Zealand.
“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.”
“Traditional financial firms looking to make the leap into the next generation of digital services will have much to gain from launching open banking solutions, particularly as a growing number of young customers focus on convenience and speed,” said Fergus Gordon, who leads Accenture’s Banking practice in Asia-Pacific.
“Offering those innovations now will strengthen their position to secure the customers of tomorrow, while also helping to fend off potential rivals eager to take market share away with new services.”