1 in 3 consumers would consider switching banks to get Open Banking features: Frollo research
Research by Frollo, the Australian leader in Open Banking solutions, shows 36% of respondents would consider switching to a different bank to access Open Banking powered features.
With the next big milestone for the Consumer Data Right (CDR) roll out coming up in July, Frollo has conducted a survey with Australian consumers to find out their appetite for features enabled by Open Banking.
Real consumer appetite for Open Banking powered features
Research previously conducted by Frollo and NextGen.Net, showed that some of the most valuable Open Banking use cases for businesses are Income & Expense verification, Personal Finance Management (PFM) and product comparison1.
Frollo’s most recent consumer research shows that the majority of respondents are keen to use these features if their bank offered them and 36% would even consider switching banks for at least one of these features.
- Account aggregation: 68% of respondents would use a feature to show all their financial accounts in one place, if their bank offered it. 21% would consider switching to another bank for this feature
- Spend insights: 74% would use a feature to help them understand their spending by categorising transactions if their bank provided it. 23% would consider switching to another bank for this feature
- Income & expense verification: 63% would use a feature to speed up applying for a mortgage or personal loan by sharing data from their bank accounts if their bank offered it. 36% would download a standalone app and 20% would consider switching to a different bank for this feature
- Product comparison: 58% would use a feature to look at their finances and compare financial products from different financial institutions if their bank offered it. 54% would download a standalone app and 21% would consider switching to a different for this feature
An opportunity to compete
The research shows an opportunity for challengers, tier 2 banks and fintechs to compete for customers by offering them innovative products and customer experiences.
Gareth Gumbley, Founder & CEO of Frollo said, “The Consumer Data Right is meant to bring about more competition and innovation, and ultimately a better deal for consumers. This shows that there’s a real opportunity for tier 2 banks, lenders and fintechs to compete for customers by providing them with new, innovative user experiences and products using Open Banking data.”
1. State of Open Banking in Australia 2020, published November 2020
Research audience
– 537 consumers
– 43% Non Frollo users
– 23% Frollo CDR users
– 34% Frollo non CDR users
