Adoption of Virtual Banks and Insurers

Adoption of Virtual Banks and Insurers 55 Survey Findings Protection of personal data Protection of personal data is a critical requirement of any financial service. Leaking customers’ personal data not only damages a company’s reputation, it carries significant legal implications. In Hong Kong, traditional banks and insurers invest heavily in cybersecurity protection measures and implement internal control procedures to protect customer data. When it comes to virtual banks and insurers, members of the public may doubt whether these new virtual entries have sufficient resources and controls to protect customer data in the same manner as the incumbents. Instead of verifying identity cards and obtaining signatures in person, virtual banks and insurers collect personal data such as facial, voice authentication, and thumbprint data through mobile devices. Having a more comprehensive customer profile helps to improve customer experience (e.g., reducing the number of steps required to open an account or for login authentication). On the other hand, customers may have concerns regarding unauthorized use of their personal data. To understand more about the public perception on this issue, respondents were asked if they consider traditional banks and insurers offer more protection for personal data than their virtual counterparts. Of the respondents, 33.4% are indifferent, while 39.0% trust traditional banks and insurers over virtual operators in terms of personal data protection. Exhibit 27 Traditional banks offer more protection for personal data than virtual banks [1 - Totally Disagree ...... 5 - Totally Agree]