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Thursday, 06 September 2018 10:44

Open banking will see banks gain business, survey finds

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Open banking will see banks gain business, survey finds Pixabay

A survey of 2000 Australian consumers has shown that Australian banks enjoy a level of trust above that granted by other organisations, with the result that open banking, when it arrives next year, is set to see data sharing between banks, rather than between banks and third parties.

Professional services provider Accenture, which conducted the survey, also found that this lack of trust would hinder third parties from offering banking services.

This, in turn, would give existing banks an advantage in developing new services of their own and avoiding competition from new players.

The survey found that banks which were quick off the mark to develop open banking services would set themselves apart from competitors and gain traction in the marketplace.

The government deadline for open banking is 1 July 2019 and it is closely tied to the new consumer data right.

accenture open banking

The survey found that 83% of the consumers surveyed were largely ignorant about the introduction of open banking and the laws around it.

"The poll also indicated consumers are not entirely ready to embrace open banking as a concept. Their main concerns include the security and privacy of their financial data (64%); a lack of trust in large tech companies when it comes to that data (56%); and a lack of understanding of the benefits (53%)," Accenture said.

Adding to the issues was the plethora of bad news that had emanated on a daily basis from the banking royal commission. Sixty-eight percent of consumers surveyed said these reports caused them to have grave concern over how banks were managing their money and financial data.

As far as trust levels went, 57% were inclined to trust their own banks with access to their financial data while their trust in third parties was much lower: big technology companies (29%), other banks (8%) and retailers (3%).

Even the prospect of better deals would not lure consumers to share banking data with non-bank third parties, the survey found, with 66% indicating as such.

"Since Australians still don’t understand open banking and are prepared to guard their financial data closely, there’s unlikely to be a mad rush to develop or adopt Open Banking-based services next year, particularly outside the banking sector," Accenture said.

accenture open banking two

The survey also canvassed possible measures that would address security and privacy concerns. Those figures are represented in the graphic above.

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Sam Varghese

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Sam Varghese has been writing for iTWire since 2006, a year after the site came into existence. For nearly a decade thereafter, he wrote mostly about free and open source software, based on his own use of this genre of software. Since May 2016, he has been writing across many areas of technology. He has been a journalist for nearly 40 years in India (Indian Express and Deccan Herald), the UAE (Khaleej Times) and Australia (Daily Commercial News (now defunct) and The Age). His personal blog is titled Irregular Expression.

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