Ahead of the introduction by HKMA of Hong Kong's first virtual banking licenses, professional services company Accenture has released research showing strong interest in personalized banking services.
A survey of consumers in 28 markets found that nearly half of Hong Kong respondents would be willing to share significant personal information with their banks and insurers in exchange for lower pricing on products and services.
In banking, 81% of consumers would be willing to share income, location and lifestyle habit data in return for rapid loan approval, and 79%. would do so to receive personalized offers based on their location, such as discounts from nearby retailers.
Meanwhile nearly half (46%) of consumers want their bank to provide updates on how much money they have until their next pay day, and 63 percent want savings tips based on their spending habits.
For the insurance sector, 70% of Hong Kong respondents would support personalized insurance premiums such as discounts on car insurance based on safe driving habits (70%) and premiums that are tied to healthy living (49%).
In addition, 83% of consumers would be willing to share data including income, location and lifestyle habits if they believe it would help reduce the possibility of an injury or loss.
“Digital technologies are going to have a critical impact on the distribution of financial services in Hong Kong,” said Fergus Gordon, a managing director at Accenture in charge of the company's banking practice in Asia Pacific and Africa.
“Traditional banks need to fundamentally assess their distribution channels and networks and adapt to this evolving environment, focusing on improving their customer experience both at branches, where consumers who need face-to-face interaction crave for new experiences, hyper-personal information and offers, and on their mobile devices, where ease of use and intuitive platforms are essential.”
But Hong Kong consumers are also highly concerned about privacy, with 60% stating that they are very cautious about sharing their personal data.
The survey also found that data breaches ranked behind only increasing costs and a lack of products for their needs as the third biggest factor that would make consumers leave their current bank or insurer.