Advisers rated behind utility companies and banks when it comes to sharing financial data

New data from Frollo has revealed that Australians rate their advisers behind their banks and utility companies when it comes to trust with their data.

In fact, banks are the most trusted among Aussies (51 per cent), followed by utility companies (37 per cent), with brokers/financial advisers in third place (35 per cent), Frollo said in its new Open Banking – The consumer perspective report.

Big technology companies (27 per cent) and fintechs (23 per cent) are the least trusted. 

When asked to rate their trust, the 1,066 Aussies Frollo surveyed admitted that their two biggest concerns are whether businesses will keep their data safe and whether they have their best interest at heart.

Other insights to come from the report include consumers’ willingness to welcome the products and services Open Banking enables, such as the ability to switch banks.

“To capture this excitement and make Open Banking successful, organisations need to focus on building use cases that deliver immediate, demonstrable value to their customers,” said Frollo CEO Tony Thrassis.

Touching on the reluctance Aussies have when sharing their financial information, Mr Thrassis said it’s understandable.

“For years they’ve been warned about the dangers of sharing their account credentials,” he explained.

“This is why government, banks and Data Recipients need to educate consumers on how Open Banking puts them in control of their data. But words aren’t enough, we need to show them they are in control. That they actually decide how they use their own data, who they share it with and for what purpose”.

Moreover, according to Frollo’s research, Aussies found that Open Banking enabled more personalised advice with as many as 58 per cent of Australians noting that a service where they can link their financial accounts to get tailored advice would be useful. More than one in five (23 per cent) said it would be very useful.

Interestingly, Gen Z (76 per cent) are more likely than anyone to find this service useful, followed by Millennials (69 per cent) and Gen X (63 per cent), compared to just 38 per cent of Baby Boomers.