From open banking and open data to real-time payments and digital identities, we’re witnessing a generational shift in the way Canadians are interacting with financial institutions (FIs). The ripple effect of these evolving trends creates a paradigm shift in the role FIs play in their clients’ lives. This is creating a burning platform for FIs to adapt business models, operations, processes, risk management and technology priorities. Taken together, these emerging trends represent a world of possibility for financial services providers and their customers.
In 2020, EY commissioned TrueChoice to ask 1,000 Canadian personal banking clients about their preferences, decision drivers, value perceptions and expectations with respect to data sharing. This year, we went back to Canadian personal banking clients — as well as small and medium-sized businesses (SMBs) — to understand how their preferences have evolved and spot emerging trends as we move towards an open banking regime.
What did we uncover by taking the pulse of Canadian consumers? Ongoing changes, reinforced by a pandemic-fuelled surge in digital interactions and transactions, are driving a sharp increase in the amount of data financial services providers collect from clients. Across the board, clients are now more willing to share data with their financial services providers. Interestingly, clients are also willing to share more data about themselves, including sensitive data about their preferences, non-financial personal data, online behaviour data, transaction data at other FIs and work-related data.
That said, how can FIs capitalize on the data-sharing trend to make the most of this opportunity?