Paul Stamper, Head of Financial Services, Ipsos MORI, presented our latest research into attitudes to Open Banking at an Ipsos MORI Future of Research event in London on 1 November 2017. Are consumers ready for change and how will they feel about having more control over their banking data? Will they really change behaviour or will the “status quo” bias prove insurmountable? What opportunities and risks does this pose for traditional financial institutions? Which FinTech disruptors are going to step into the breach? What are the global implications?

1. Ipsos MORI – Future of Research
WIDE OPEN?
PAUL STAMPER, HEAD OF FINANCIAL SERVICES,
IPSOS MORI

2. Ipsos MORI – Future of Research
THE COUNTDOWN TO
PSD2 HAS BEGUN…
AND THE SIGNS ARE
ALREADY APPEARING

3. Ipsos MORI – Future of Research 3
FIRST DIRECT TRIALS SMART
COMPARISON TOOL
The Daily Telegraph 19 Oct 2017
HSBC BEGINS BETA TESTING
AGGREGATOR APP
Finextra 28 Sept 2017
ING ROLLS OUT ITS FINTECH APP
YOLT MORE WIDELY IN THE UK
Finextra 1 June 2017

4. Ipsos MORI – Future of Research 4
HOW DO CONSUMERS FEEL
ABOUT THEIR DATA?

5. 5Ipsos MORI – Future of Research
Global Trends Survey : Base size: 1,002 GB adults 18-65, Online, 2016
75%
% agree
I would like to have access to the
data that companies hold about
me, as it could really help me
make better decisions – for
example about how I spend my
money

6. 6Ipsos MORI – Future of Research
40%I am comfortable providing
information about myself to
companies who are online in
return for personalised services
and products
Global Trends Survey : Base size: 1,002 GB adults 18-65, Online, 2016
% agree

7. 7Ipsos MORI – Future of Research
71%I don’t know what my rights are
over the way companies handle
my personal information
Global Trends Survey : Base size: 1,002 GB adults 18-65, Online, 2016
% agree

8. 8Ipsos MORI – Future of Research
73%I often don’t bother fully
reading terms and conditions on
a website before accepting them
Global Trends Survey : Base size: 1,002 GB adults 18-65, Online, 2016
% agree

9. 9Ipsos MORI – Future of Research
82%It is inevitable that we will all lose
some privacy in the future because
of what new technology can do
Global Trends Survey : Base size: 1,002 GB adults 18-65, Online, 2016
% agree

10. Ipsos MORI – Future of Research 10
USE CASES…
WHAT ABOUT OPEN BANKING

11. 11Ipsos MORI – Future of Research
WE INTRODUCED FOUR EXAMPLES…
▪ SMART
COMPARISON TOOL
▪ ALL-IN-ONE
FINANCIAL APP
▪ SPEEDING UP THE
APPLICATION PROCESS
▪ DIRECT
PAYMENTS

12. Ipsos MORI – Future of Research 12
ESTABLISHING INITIAL REACTIONS
43%
32%
21%
HOW STRONGLY DO YOU AGREE
THAT THESE SERVICES ARE…
UNIQUE TO ME
BELIEVABLE TO ME
RELEVANT TO ME
MOTIVATED TO SIGN UP
63%
Base size: 1,001 UK adults 18+, Current account holders, online, 1-30 August 2017
(TOP 4 BOX 1-10 SCALE)

13. Ipsos MORI – Future of Research 13
OR A STEP TOO SOON?
IS IT A STEP TOO FAR
CAUSE FOR CONCERN?

14. Ipsos MORI – Future of Research 14
32%19%21%17%11%
ARE THEY MOTIVATED TO SIGN UP?
Base size: 1,001 UK adults 18+, Current account holders, online, 1-30 August 2017
ACTIVE
ADOPTERS
MEASURED
EVALUATORS
CONSERVATIVE
TRADITIONALISTS
FINANCIALLY
DISENGAGED
TECHNICAL
LAGGARDS
HOW DO OUR CONSUMERS SEGMENT?

15. Ipsos MORI – Future of Research 15
68% 40% 14% 15% 1%
ARE THEY MOTIVATED TO SIGN UP?
Base size: 1,001 UK adults 18+, Current account holders, online, 1-30 August 2017
ACTIVE
ADOPTERS
MEASURED
EVALUATORS
CONSERVATIVE
TRADITIONALISTS
FINANCIALLY
DISENGAGED
TECHNICAL
LAGGARDS

16. 16Ipsos MORI – Future of Research
Active Adopters : Base size: 113 UK adults 18+, Current account holders, online, 1-30 August 2017
ACTIVE ADOPTERS
Use social media at least
once a day67%
Think the all-in-one financial app
is very/extremely appealing45%
Trust a well-known payment provider
to provide Open Banking services37%
Manage their finances
on banking apps65%

17. 17Ipsos MORI – Future of Research
Measured Evaluators : Base size: 173 UK adults 18+, Current account holders, online, 1-30 August 2017
MEASURED
EVALUATORS
Are concerned about how their
personal financial data will be used
with Open Banking
68%
Use online banking89%
Place their trust in established banks
to provide Open Banking services74%
Are comfortable using
new technology92%

18. 18Ipsos MORI – Future of Research
Conservative Traditionalists : Base size: 207 UK adults 18+, Current account holders, online, 1-30 August 2017
CONSERVATIVE
TRADITIONALISTS
Would be happy sharing their personal
financial data15%
Would be confident knowing how
to use Open Banking services24%
Go to a banking adviser in-branch to
manage finances37%
Are concerned their personal
financial data could be obtained by
criminals
89%

19. 19Ipsos MORI – Future of Research
62% prefer online payments
Uses of Cash and Electronic Payments HMRC 2016 804 telephone interviews, business with fewer than 20 staff and turnover below £10m, January- February 2016.
WHAT ABOUT SMALL BUSINESSES?
Fees associated with such
payments remain an issue
Account software use cases
consistently well-received

20. Ipsos MORI – Future of Research 20
GRAB THE OPEN BANKING
WHO IS BEST PLACED TO
OPPORTUNITY?

21. Ipsos MORI – Future of Research
AVERAGE ACROSS ALL FOUR USE CASES
84%
29%
21% 18%
7% 4% 4%
Base size: 1,001 UK adults 18+, Current account holders, online, 1-30 August 2017
A company that
manages digital
payments
An established
bank
A well-known
payments and
card brand
Another well-
known digital
brand
A new-to-
market fintech
A newer
bank
TO PROVIDE THESE SERVICES?
WHO WOULD YOU TRUST
A company
that specialises
in mobile tech

22. Ipsos MORI – Future of Research
9%
15%
11% 11%
▪ SMART
COMPARISON TOOL
▪ ALL-IN-ONE
FINANCIAL APP
▪ SPEEDING UP THE
APPLICATION PROCESS
▪ DIRECT
PAYMENTS
VERY/EXTREMELY
APPEALING (TOP 2 BOX)
45%
Base size: 1,001 UK adults 18+, Current account holders, online, 1-30 August 2017
WHICH IS THE MOST APPEALING USE CASE?

23. 23Ipsos MORI – Future of Research
A slow start among active adopters
WHAT CAN WE EXPECT IN 2018?
With a steep acceleration as
awareness grows
Small businesses a key potential
audience
Communication now the most
critical need

24. 24Ipsos MORI – Future of Research
YOU.THANK