Seven in ten consumers in India would be willing to share significant personal information, such as location data and lifestyle information, with their bank and insurer in exchange for lower pricing on products and services, reveals Accenture.
The Accenture Study Financial Services Consumer Study found that more than two-thirds of Indian consumers would share that data for benefits including more-rapid loan approvals, discounts on gym memberships and personalized offers based on current location.
At the same time, however, people believe that privacy is paramount, with nearly 81 percent of consumers saying they are very cautious about the privacy of their personal data.
Data security breaches were the second-biggest concern for consumers in India, behind only feeling like their complaints are not dealt with in an acceptable manner when asked what would make them leave their bank or insurer.
Rishi Aurora, a managing director at Accenture who leads its Financial Services practice in India noted, “A large number of people willing to share more of their personal data for more efficient services at better prices underscores the role of digital technologies in the distribution of financial services in India. At the same time, there’s also growing concern about safeguarding of this data, so financial institutions need to make that a top priority as they look to address their customers’ evolving needs. If consumers don’t see the level of personalization, offers, and products they want from their banks or insurers, they will certainly look for it elsewhere.”
Indian consumers showed strong support for personalized insurance premiums, with 76 % interested in receiving adjusted car insurance premiums based on safe driving and 69 % in exchange for life insurance premiums tied to a healthy lifestyle. The vast majority of consumers (92 percent) would provide personal data, including income, location and lifestyle habits, to their insurer if they believe it would help reduce the possibility of injury or loss.
In banking, 93 percent of consumers would be willing to share income, location and lifestyle habit data for rapid loan approval, and 91 percent would do so to receive personalized offers based on their location, such as discounts from a retailer. Nearly three-quarters (76 percent) of consumers want their bank to provide updates on how much money they have until their next payday, with the same rate of respondents (76 percent) wanting savings tips based on their spending habits.
The company also revealed that the consumers in India are willing to share significant personal data to improve their lives and get very targeted services and offers
“There’s an ocean of opportunities emerging with data analytics and personalization, but banks and insurers also need to pay close attention to growing concerns about data privacy and security and make that a top priority as they invest in new technologies and digital services.”, Piyush Singh, a managing director at Accenture who leads its Financial Services practice in Asia-Pacific and Africa.
Accenture surveyed 47,000 respondents across 28 marketsArgentina, Australia, Belgium, Brazil, Canada, Chile, China and Hong Kong (SAR), Colombia, France, Finland, Germany, India, Indonesia, Italy, Japan, Malaysia, Mexico, Peru, Netherlands, Singapore, South Africa, Spain, Sweden, Thailand, United Arab Emirates, the United Kingdom and the United States. Respondents were required to have a bank account and an insurance policy and covered multiple generations and income levels. The survey was conducted online during May and June 2018.
The full report can be downloaded at accenture.com/FSConsumerStudy2019.