Consumer Preference for Digital Banking and Concerns About Fraud
A recent study conducted by Entrust, a payments and data security company, revealed that the majority of consumers prefer digital banking over in-person transactions but are apprehensive about the risk of fraud. The survey, which included 1350 participants who engaged in digital payments within the past year, found that 88% of respondents favor online banking in some capacity. Additionally, a staggering 90% expressed concerns about falling victim to banking or credit fraud.
Global Insights on Digital Banking
Respondents from nine countries, including the United States, Canada, United Kingdom, Germany, Saudi Arabia, United Arab Emirates, Singapore, Australia, and Indonesia, participated in the survey. The results indicated that 59% of consumers prefer using their bank or credit union’s app for banking activities, while 29% opt for desktop web browsers. A small percentage favored in-person banking at a branch (8%) or using an interactive teller machine (3%). Notably, 86% of participants from the United States expressed openness to utilizing a completely branchless online banking service.
Concerns Over Banking Security
When asked about personal experiences with banking security, 42% of respondents disclosed receiving notifications of personal banking or credit fraud in the past year. As a result, more than two-thirds (67%) switched to a different financial institution. Moreover, over half of the participants (52%) indicated willingness to explore digital currencies for payments.
Preferred Payment Methods
In terms of payment preferences, 50% of respondents identified credit/debit cards with chips as their top choice, while 48% favored contactless credit/debit cards. These findings underscore the importance of integrating security measures into digital banking experiences.
Addressing Consumer Concerns
Jenn Markey, Vice President of Product Marketing at Entrust, emphasized the need for financial institutions to prioritize security to build consumer trust and loyalty. Markey highlighted the significance of implementing biometric security solutions to enhance digital banking experiences and mitigate fraud risks. She warned that failing to address consumer fears about security could result in customer loss for banks and credit unions.
Ultimately, the study underscores the evolving landscape of consumer banking towards digital interactions and the imperative for institutions to prioritize security measures to foster trust and confidence among customers.