Adoption of Virtual Banks and Insurers

Adoption of Virtual Banks and Insurers 56 Survey Findings Willingness to share personal information with another financial institution when opening an account One of the challenges when opening a bank account for individuals and SMEs is to go through the KYC and bank approval procedures. From submitting application documents to receiving approval from a traditional bank, it could take days for new applicants. As shown in Exhibit 12, it is common for an individual to have multiple bank accounts. However, the same set of documents need to be resubmitted to open an account in another bank. A lot of efforts can be saved in the onboarding process if the customer can authorize a bank to share his or her information with another bank. In this survey, we asked if respondents were willing to authorize their banks to share personal information (e.g., name, address, Hong Kong ID number, etc.) with other banks. Respondents were allowed to select multiple options. Many respondents are unwilling to share any personal information. For the rest, most agree to share their names, followed by communication contacts, and credit score. Despite it being an authorized financial institution that is receiving the personal information and the sharing is initialized by the individual, 844 respondents still have reservation about sharing any personal information. It is clear that the public is very concerned about data privacy. Unless this concern is addressed, it will be difficult to realize the potential of delivering novel financial products and services involving data from different sources, which is the underlying motivation of OpenAPI.