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COMMENT
Gary Muncaster, Managing Director of Business and Consumer Insight, Populus
Cyber security should be used as an asset for FIs
Our latest research has shown that a staggering 46% of people in the UK would switch their banks if there had been a breach in security with their current provider, such as a major ‘hack’ or data leak. This alone demonstrates two things: just how important consumers view their security, and how many of them will jump ship if that security is threatened.
And while consumers are more than happy to cut ties with their bank if they experience fraud, a third of them still think it is ‘likely’ that they will experience bank fraud in the next five years. With concern driven by hearing of other people’s experiences as well as their own potential past issues with online banking, it’s easy to understand the belief that for many, fraud is inevitable.
Banks and financial institutions have been preoccupied by the implementation of cyber security since online banking was first introduced. From banking apps to Bitcoin, technology developments have been pivotal to the business decisions made by the banking sector. However, while the banks themselves need cyber security to ensure that their business systems and customers’ finances stay safe, they also need to show that they take security seriously. In short, they need to prove, now more than ever, that cyber security is their top priority, in order to keep hold of their customers.
www.ibsintelligence.com © IBS Intelligence 2017
A deeper dive into the statistics here suggests that not all consumers worry equally when it comes to their cyber security. When looking at banks from different tiers we see an interesting trend. Tier one being the traditional ‘Big 5’ (Lloyds, Barclays, HSBC, RBS, Natwest), tier two being the smaller but still established banks and FIs (Halifax, TSB, Santander, Nationwide), and tier three being the smaller challengers (Metro Bank, Atom, Tesco Bank, Virgin Money etc.)
29% of consumers who have their main account with a major bank, believe it is likely they will be a victim of fraud in the next five years, as opposed to just 19% of those who have their account with a tier three provider. Our figures also show they are almost 10% less likely to trust the banks to keep their details safe (68% vs 77%)
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