Adoption of Virtual Banks and Insurers

Adoption of Virtual Banks and Insurers 10 Executive Summary As indicated above, the majority of respondents had not purchased any products from the two virtual insurers, which have been in operation since 2019. Three quarters of the respondents replied they were very unlikely or unlikely to purchase from virtual insurers in the following 12 months, and only 40 respondents (2%) showed a high interest in making such a purchase. Comparison between traditional and virtual banks and insurers Regarding whether it would be easier to open an account and conduct transactions with virtual banks and insurers, the Study found that 44% of the respondents agreed or totally agreed that it would, while 37% were unsure. This is an interesting finding, as the majority of the respondents did not have direct experience with any virtual banks or insurers. This perception was probably acquired from the media, the promotional campaigns of virtual entries, or by visiting their websites. Overall, when compared with traditional banks and insurers, the respondents did not declare any special preference for virtual banks and insurers based on social factors, such as tech-savviness, sense of community, or innovativeness. Trust and security concerns The respondents were very wary about the need for protection from cyberattacks and the misuse of confidential personal data. As such, they ranked security as a top challenge for virtual banks and insurers. Most of the respondents (57%) disagreed that virtual banks were as trustworthy as traditional banks. A further 30% of the respondents were indifferent to whether traditional banks or virtual banks and insurers would be better at safeguarding and protecting their assets and personal data. In terms of voluntarily sharing personal data to trusted third parties to streamline a transaction, a high proportion of respondents were unwilling (43% totally unwilling and 21% unwilling) to share their personal data in exchange for convenience. Even if the third party is an authorized financial institution and data sharing must be approved by the individual, a large proportion of respondents had reservations about sharing any personal information.