FINANCIAL
DATA SHARING AND SECURITY
QUALITATIVE
RESEARCH
EXECUTIVE
SUMMARY
Prepared
For:
Supplier
name: Pollara Strategic Insights Contract Number: 60074-200895/001/CY
Contract
Value: $33,302.28
Award
Date: 2020-11-06
POR
Registration Number: 060-20
March
3, 2021
For
more information on this report please contact:
por-rop@fin.gc.ca
Ce rapport est aussi disponible en français
Submitted
by:
Lesli Martin Vice President leslimartin@pollara.com 416.921.0090 x2207
1255 Bay Street, Suite 900
Toronto, ON M5R 2A9
Budget
2018 announced the Government’s intent to undertake a review into the merits of
open banking. This review is being
guided by an Advisory Committee on Open Banking, supported by a secretariat
within the Department of Finance.
To
support this work, in winter of 2019, the Department of Finance commissioned
Pollara to conduct consultations and focus groups on the merits of open
banking, with a strong focus on protecting consumer privacy, ensuring the
security of financial transactions and maintaining the stability of the financial
sector. In January 2020, the Department announced that it would undertake a
second phase of the review into the merits of open banking, which would be
facilitated by the Advisory Committee.
Research
was deemed necessary to support this second phase of the review. Overall, this will provide a comprehensive picture
of Canadians’ views and expectations concerning their ability to use and move
their own financial information, with a focus on privacy and security. Specifically, this research will allow the Advisory
Committee to understand the following:
·
Views about consumers' ability to
move, use and control their own data;
·
Current privacy and security
behaviours related to financial services, including views on
awareness/understanding of current security/privacy measures;
·
Usage of data-driven services,
including those of a financial nature;
·
Views on the likelihood of using
financial data to access new and innovative services; and
·
Expectations for how personal data
would be treated in a system of secure financial data-sharing, and roles and
responsibilities of various actors in ensuring security and privacy
protections.
Results
of this research will inform the second wave of the government’s review into
the merits of open banking. In addition,
results may be used to help the Department develop communications strategies
and products that will effectively communicate aspects of this initiative to
Canadians.
Due
to the qualitative nature of this study, results cannot be extrapolated to a
broader audience and should be considered indicative, rather than definitive.
Pollara
recruited participants to take part in the focus groups. Participants were sourced from a panel of
over 100,000 Canadians (such as Aeroplan or PC Optimum members) who have
volunteered and registered to participate in research surveys and/or focus
groups. All participants had to have at
least one bank account, in any Canadian financial institution, with a
proportion of the participants in each group having more than one. Pollara conducted a total of five virtual
focus group discussions. Each group
consisted of a mix of gender, age and income.
Participants were recruited from people residing in the following areas:
·
Prairies (Saskatchewan and
Manitoba)
·
Ontario and Atlantic Canada
·
Western Canada (British Columbia
and Alberta)
·
Quebec and New Brunswick
(conducted in French)
·
Northern Canada (NWT, YK, NUN)
In total, 45 recipients took part in this research. The focus
group discussions lasted between 90 minutes to two hours each. Participants
were paid a $100 incentive for their time. Research was conducted between February
8th and 11th, 2021.
The COVID-19 pandemic has had
limited impact on banking behaviour or the use of general data-driven
services. There are few concerns with
data security when it comes to the use of these services.
Most participants do not feel that
the COVID-19 pandemic has had a major impact on their banking behaviour. All participants were using digital tools
(online banking, apps or ATMs) to conduct most of their transactions before
COVID and are continuing to do so now.
Going to a branch was an infrequent occurrence before the pandemic, and
only a very few have switched to another method (typically telephone) rather
than going to a branch now.
The use of general data driven
services is mixed and is dependent on the perceived convenience the services
provide. Those who choose to use them
appreciate these conveniences, while who do not use them see no need for the
conveniences. Data security is not a
driver in this decision.
There is only some awareness and limited
use of innovative financial services, with the decision to use them based on
awareness of conveniences rather than level of data security.
Overall, awareness of the
innovative financial services tested is moderate, while use is quite low. While about half of the participants use digital
wallets and online payment systems, there is less awareness of robo-advisors or
personal financial management systems or small-business management – accounting
software. Some feel they use digital banks,
but often are using an online subsidiary of a traditional bank. There is very limited awareness or usage of fintechs
that offer products like those provided by tradition financial institutions,
such as lending for business or lending for consumers.
As with other data-driven
services, the use of these financial services is dependent on the perceived
level of convenience. Those who use them
appreciate the service they offer. Those
who do not either are unaware of them, or do not see the need for them. Data security has little impact on their
decision to use or not use these services.
There is extremely low awareness
of open banking. After receiving a
description, participants are unsure of what this will provide, and some are
left more concerned about their data security.
Government’s oversight does help to build confidence, however.
Only one participant had heard of open
banking. To others, the name is somewhat
concerning, as they feel it means their financial information would be open and
available for all to see. When provided
with a description, consumers are left with more questions. Because they are not concerned about data
security now, they are unsure what this system is going to offer. To some, the concept leaves them feeling
more, not less concerned, as they are not sure how it will work or who will oversee
it.
Learning of Government oversight
helps to build confidence in the system.
Participants are aware and appreciative of the CDIC protections and
expect that government involvement will give them the same level of security in
this system.
While participants are unable to
perceive the benefits of open banking on their own, of those tested, consumer
redress, followed by data protection and control are most meaningful.
While participants are unable to
come up with benefits of the program themselves, they do see the benefits of
the tested consumers outcomes. The most
strongly positive benefit is that of redress, in case of an issue. Participants also feel data protection and
consumer control over data are important outcomes of the system. They are less likely to see the need for a
wider range of useful, competitive and consumer friendly financial services, as
they feel there are many out there already that they do not use. Nor do they see the benefit of reliable,
consistent access to services, as they feel they have this access presently.
Endorsement for an open banking system
ranges from support to indifference.
When asked how they would feel if
the Canadian government moved forward with an open banking system, opinions
ranged from support to indifference.
Some would appreciate the government oversight and extra security,
although they do not feel this would impact their use of data-driven
services. Others feel they would not use
the system, so do not particularly care.
None said they would oppose the adoption of this system.