Nearly Five in Ten Hong Kong Consumers Willing to Share Significant Personal Data with Banks and Insurers in Exchange for Lower Pricing, Accenture Study Finds

Nearly half of consumers in Hong Kong 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, according to a new report from Accenture (NYSE: ACN).

The data is part of Accenture’s global Financial Services Consumer Study, which was based on a survey of 47,000 consumers in 28 markets and found that close to 50 percent of Hong Kong consumers would share that data for benefits including more-rapid loan approvals, discounts on gym memberships and personalized offers based on current location. The findings are in line with a similar survey Accenture unveiled in January showing 51 percent of Hong Kong consumers would share their data with a third-party provider to get more-personalized banking services and higher returns.

“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 who leads its 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.”

At the same time, however, consumers believe that privacy is paramount, with two-thirds (60 percent) saying they are very cautious about the privacy of their personal data. In fact, data security breaches were the third-biggest concern for consumers, behind only increasing costs and lack of products for their needs, when asked what would make them leave their bank or insurer.

Hong Kong consumers showed strong support for personalized insurance premiums, with 70 percent interested in receiving adjusted car insurance premiums based on safe driving and 49 percent in exchange for life insurance premiums tied to a healthy lifestyle. The vast majority of consumers (83 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, 81 percent of consumers would be willing to share income, location and lifestyle habit data for rapid loan approval, and 79 percent would do so to receive personalized offers based on their location, such as discounts from a retailer. Nearly half (46 percent) 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.

“There’s strong evidence in Hong Kong that consumers are willing to share significant personal data to improve their lives and get very targeted services and offers, but here, as in many countries around the world, concerns about data privacy and security are very high,” said Ravinder Chhabra, managing director at Accenture and Financial Services practice lead in Hong Kong. “Addressing those concerns should be a top priority for financial firms as they navigate the ocean of opportunities that are emerging with data analytics and personalization.”

Appetite for data sharing differs around the world

Appetite for sharing significant personal data with financial firms was high in China and India, with 67 percent and 69 percent of consumers respectively willing to share more data for personalized services. That rate was even higher in Southeast Asia, with 81 percent of respondents in Indonesia and 74 percent in Thailand saying the same. Half (50 percent) of consumers in the U.S. and 53 percent in Hong Kong said they were willing to share more data for personalized services, and in Europe — where the General Data Protection Regulation took effect in May — consumers were more skeptical. For instance, only 40 percent of consumers in both the U.K. and Germany said they would be willing to share more data with banks and insurers in return for personalized services.

“Consumers in Asia are clearly more willing than in other parts of the world to share some level of personal data, but they also have high expectations to get something in return, so financial firms need to understand that and deliver the goods,” Gordon said. “As the old saying goes, there’s no free lunch and if consumers don’t see the level of personalization, offers and products they want, they will certainly push back later.”

The full report can be downloaded at accenture.com/FSConsumerStudy2019.