Some 67% of respondents had switched banks or credit services upon notification that any fraud incident had occurred.
In a recent online survey of 1,350 consumers from nine countries who had made or received digital payments within the past 12 months, respondents were found to have pivoted to online banking and digital financial products and services amid the pandemic, yet were jumpy about the surge in fraud and privacy breaches, among other cybercriminal activities.
Respondents from the United States, Canada, the United Kingdom, Germany, Saudi Arabia, United Arab Emirates, Singapore, Australia and Indonesia were questioned on how the past two years of the pandemic had impacted their sentiments, preferences, and habits in regard to payment disruptions, banking and financial sector experiences and trends such as the surges in cybercriminal activities worldwide.
Some of the key findings include:
- 88% of respondents indicated they preferred to do their banking online in some form. Specifically, 59% indicated that they preferred using the app from their bank or credit union, while 29% preferred their desktop web browser. Some respondents still preferred in-person banking, such as at a branch (8%) or at an interactive teller machine (3%).
- 90% of respondents indicated they were concerned about the potential of banking or credit fraud as banking and credit become more digital. Many respondents (42%) indicated they had ever received notification of a personal banking or credit fraud in the past 12 months. Of these, 67% changed their bank or credit union as a result.
- 86% of respondents from the USA indicated they would consider using a branchless online banking service for their banking. Additionally, 52% of overall respondents indicated they would consider using digital currencies for payments.
- 50% of respondents listed credit/debit cards with chips as their most preferred payment method, followed by 48% preferring contactless credit/debit cards. Additionally, 53% of respondents indicated they had ever received a digitally issued debit or credit card from their bank or credit union.
- Almost two-thirds of respondents across all age groups preferred to open a bank account digitally: Gen Z (65%), Millennial (69%) and Gen X (54%).
Said Jenn Markey, Vice President of Product Marketing, Entrust, which commissioned the study: “Our study found both an overwhelming preference for online banking and a significant concern about fraud. In fact, more than two-thirds of consumers in our survey changed their bank or credit union after receiving a fraud or privacy alert. 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.”