Data are increasingly important
The market for banking services is changing further in the coming years due to the growing importance of data. The report “Building trust through change. Lending, saving and paying in the data age”, DNB outlines the current state of affairs in the market for banking services and describes trends and future scenarios. In all future outlooks, the importance of data increases. Data related to e.g. transaction moments, purchase behaviour and personal characteristics are used to improve banking core processes and to enable targeted offerings, such as mortgage loans or savings accounts. Developments in artificial intelligence (AI) and data analytics touch upon almost all aspects of banking services, and their role is steadily increasing. New market participants with a technology background are also entering the market for banking services now and start competing with established market operators.
Trust depends on careful use of data
More attention for data is required to maintain people's trust. Surveys show that consumers have more trust in banks than in tech companies where the careful handling of personal data is concerned (see Figure 1). Dutch consumers attach great importance to the careful handling of their personal data, and banks should work hard to retain this relationship of trust. Under PSD2, consumers must give their explicit consent if they wish to share their payment data with third parties. The Dutch Data Protection Authority monitors compliance with the General Data Protection Regulation (GDPR). As the central bank and supervisory authority we must also stay alert, since careless or unauthorised use of data has a negative effect on public trust.