Little inclination to share payment data
Only very few consumers of more than 2,600 surveyed are prepared to authorise access to their bank accounts to allow for active use of payment data. The survey also showed that consumers have more trust in banks than in tech companies as far as the use of payment data is concerned.
This wary attitude of consumers is important information for banks and other parties planning to launch new services following the implementation of the revised European Payment Services Directive (PSD2). It is also relevant in respect of new initiatives banks and tech companies want to launch worldwide to make more intensive use of potentially privacy-sensitive payment data in offering services to consumers.
Implementation of PSD2
The implementation of PSD2 makes it possible for consumers to give third parties, such as other banks or FinTech companies, access to data on individual bank accounts. It is up to consumers to approve access to their bank accounts.
The payment data may for instance be used to conduct a risk assessment in loan applications or to generate account information overviews. In the Netherlands, the corresponding legislation was implemented early this year, and since last month banks and other payment service providers have been able to approach their customers with proposals to use their bank account data.
The purpose of the new Directive is to encourage competition and innovation in the payment system. But even long before this Directive came into effect did the banks and large tech companies such as Google, Amazon, Facebook and Apple explore the possibilities for additional use of payment data.
Overviews of income and expenditure
The survey shows that on average 11% of respondents are willing to give consent for various forms of data usage (see Figure 1), 72% are not prepared to do so, and 15% do not know yet when asked about various situations. One in five respondents indicate that they would agree to their own bank using data to create an overview of all accounts, income and expenditures. For non-banking companies the percentage of respondents indicating that they will give permission to access the bank account for creating such overviews is even lower at 6%.
Figure 1 - Proportion of respondents prepared to give consent, per situation