USE OF
PERSONAL DATA
An extract from Perspective:
The understanding your customer issue
Essential insights into the issues facing your industry today
Use of personal data
What are consumers’
attitudes towards the
use of their personal
credit data, spending in
uncertain times and finding
the best deal for financial
products? To find out, we
commissioned YouGov to
conduct a survey around
these themes. The survey
was completed by more
than 2,000 consumers
in October 2016.
We think you’ll find the figures
The decision to Brexit is still only a few
quite illuminating.
months old and politicians, businesses
and consumers alike are still trying to fully
The results highlighted that, since the
understand the impact of the decision
end of June 2016 and the Brexit vote,
and implement the right strategies.“
over a fifth (23%) of those surveyed
whilst only 12% said their spending
Better education required
on Open Banking
has increased. Just under a fifth (19%)
Equally, our survey found that an
went on to say that they have delayed
astonishing 90% of adults have never
or cancelled planned purchases since
heard of the Open Banking initiative,
the referendum.
with 45% of respondents then going
said their spending has decreased,
on to say that they are not likely to use
When asked about potential price
Open Banking when it becomes available.
increases post-Brexit, the top three
These figures present quite a stark reality
concerns for consumers were
for the initiative, particularly as 81% of
groceries/food prices (44%), petrol
consumers are already online-savvy when
prices (39%) and household bills (38%).
it comes to banking and are actively
Surprisingly, the main concern for the
managing their account online or through
The Brexit effect
younger population (18 to 24 year olds)
a banking phone app. Interestingly,
There is understandably a lot of curiosity,
was travel and holiday price increases,
of those who agreed they are likely to
worry and anticipation around the
with 40% citing this as their top concern,
use Opening Banking, 41% were aged
effect Brexit will have on consumer
compared to the national average
between 25 and 34 years, indicating that
spending and, even though it’s still very
of 26%.
this age band are most receptive to the
early to say, we thought it would be
newest forms of information transfer.
interesting to ask consumers directly
Paul Birks, Chief Data and Analytics
about their spending habits since
Officer at Equifax, said: “Levels of
the EU referendum announcement.
uncertainty in the market remain high.
23%
64%
would like
the tools from Open Banking
to better monitor their bank
accounts against fraud
said their spending
has decreased
since Brexit
12%
53%
said their spending
has increased
since Brexit
19%
have delayed or cancelled
planned purchases
EQUIFAX
READ MORE...
would like Open Banking
to help compare current
account offerings from
different banks
51%
would like
better monitoring of their
spending and see all their
accounts in one place
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Use of personal data
90%
Consumers are not too patient when it comes to
submitting applications for financial products online
34%
of adults have
never heard of the
Open Banking initiative
of consumers
expect an immediate response
on short-term loans
26%
on credit cards
45%
18%
were not likely to use
Open Banking when it
becomes available
on bank loans
When asked about sharing
Almost half (43%) of those surveyed
in terms of bringing consumers the best
personal data through Open Banking,
said they were not aware that the data
deals. However, there seems to be an
60% suggested they would not consent
they share with banks (e.g. if they have
inherent mistrust of this new initiative.
to this, with the vast majority (67%)
a mortgage or require a loan) can have
Only by being transparent about the
citing that they think it wouldn’t be
a direct impact on the products the
benefits of the programme can we
secure and worry that their data will
banks offer to them.
convince the public that it is in their
best interest. The industry needs to
fall into the wrong hands, whilst 62%
think it would mean third parties could
The research also showed that
work together to highlight the positives
contact them and 49% believe it
consumers are not too patient when it
of this activity in terms of securing
would be an invasion of their privacy.
comes to submitting applications for
bank accounts from fraud, giving
Again, the most receptive segment
financial products online. Many expect
consumers better access to the
were the 25 to 34 year olds, with 35%
an immediate indication of whether they
cheapest forms of borrowing and
being likely to consent to their
have been approved for short term
speeding up online applications.”
personal data being shared.
loans (34%), credit cards (26%) and
bank loans (18%).
READ MORE...
Overall, respondents did agree with
the positives of Open Banking and
Jake Ranson, Director of Banking
agreed that it would be important to
at Equifax, said: “One of the key
see tools to allow them to better monitor
elements we should take from this
their bank accounts to help protect
research is the need to better inform
against fraud (64%), compare current
and educate consumers on the merits
account offerings from different
of Open Banking. The vast majority
banks (53%), better monitor their
of people already bank online or
spending and see accounts all in
use an app, and the features of
one place (51%).
Open Banking are the next logical step
EQUIFAX
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Use of personal data
Comparison websites
Comparison websites have become
increasingly popular in recent years,
How often, if at all, do you use comparison websites
when choosing a financial product (e.g. loan, credit card etc.)?
supported by the fact that 70% of
respondents in our survey stated
that they use them when choosing
Always (i.e. every time)
financial products, such as loans
and credit cards. 38% believe that
Often
they get the best deals through
comparison websites.
However, in reality, this may not always
be the case and the Competition and
Sometimes
Rarely
Markets Authority (CMA) has recently
launched an investigation into digital
Never
comparison tools (DCTs) because, while
they are effective in terms of encouraging
Don't know
competition and helping consumers to
find better deals and switch, they have
0%
20%
40%
60%
80%
100%
faced criticism recently for not featuring
the full range of products and all
available offers.
SOURCE: YouGov online survey of 2,006 GB adults
between 14th and 17th October 2016.
In general, to what extent do you agree
or disagree with the following statement?
“I always get the best deals through a comparison website”
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Strongly agree
Tend to agree
Neither agree nor disagree
Tend to disagree
Strongly disagree
Don't know
Not applicable – I have never
used a comparison website
Net: Agree
Net: Disagree
0%
EQUIFAX
20%
40%
60%
80%
100%
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