Consumers Worried About Digital Banking Security

Most consumers prefer to bank digitally rather than in person but are worried about the risk of fraud, according to new research by payments and data security company, Entrust.

A survey of 1350 consumers who made or received digital payments in the past 12 months found that 88% of respondents prefer to do their banking online in some form. Nearly all respondents (90%) reported being concerned about becoming a victim of banking or credit fraud.

Responses were gathered from consumers in nine countries, including the United States, Canada, United Kingdom, Germany, Saudi Arabia, United Arab Emirates, Singapore, Australia and Indonesia.

More than half (59%) said they prefer using their bank or credit union’s app to do their banking, while 29% prefer their desktop web browser. A small proportion of respondents preferred to bank in person at their branch (8%) or an interactive teller machine (3%).

Most of the respondents based in the United States (86%) said that they would consider using an entirely branchless online banking service for their banking. 

When questioned about their personal experience of banking security, 42% of respondents said that they had received notification of a personal banking or credit fraud within the past 12 months. As a result of receiving this notification, more than two-thirds of respondents (67%) switched to a different bank or credit union.

Asked how they felt about using digital currencies for payments, more than half of respondents (52%) said they would consider it. 

Regarding sharing their most preferred payment method, 50% of respondents listed credit/debit cards with chips, while 48% favored contactless credit/debit cards.

“This study highlights how more than ever, consumer banking is about digital interactions first, and that they must create that digital experience with security at its foundation,” said Jenn Markey, vice president of product marketing at Entrust. 

Markey said that banks and credit unions should take action to assuage consumers’ fears concerning fraud and banking security or risk losing customers.

“It’s clear that financial institutions must meld rich digital experiences with proven security measures such as biometric security solutions to increase consumer trust and loyalty,” she said.