The shift towards digital banking has become increasingly prevalent among consumers, with a recent study by Entrust revealing that 88% of respondents prefer to do their banking online. Despite this preference for digital transactions, concerns about the risk of fraud continue to loom large in the minds of consumers.
The survey, which collected responses from 1350 individuals across nine countries, including the US, Canada, and the UK, highlighted the widespread apprehension about falling victim to banking or credit fraud. A staggering 90% of respondents expressed worry about the security of their digital transactions.
Interestingly, the majority of consumers (59%) indicated a preference for using their bank or credit union’s mobile app for banking activities, while 29% favored desktop web browsers. Only a small percentage of respondents opted for in-person banking at branches or interactive teller machines. Notably, a significant portion of US-based respondents (86%) stated that they would consider utilizing a completely branchless online banking service.
The impact of fraud on consumer behavior was evident in the survey results, with 42% of respondents reporting instances of personal banking or credit fraud within the past year. Alarmingly, more than two-thirds of these individuals (67%) decided to switch to a different financial institution in response to the fraud incidents.
The study also delved into consumers’ attitudes towards digital currencies, with 52% of respondents expressing openness to using them for payments. Additionally, when asked about their preferred payment methods, credit/debit cards with chips emerged as the top choice for 50% of respondents, closely followed by contactless credit/debit cards at 48%.
Jenn Markey, Vice President of Product Marketing at Entrust, emphasized the importance of integrating robust security measures into digital banking experiences to build consumer trust and loyalty. Markey cautioned that financial institutions must prioritize security, including implementing biometric security solutions, to allay consumers’ fears and prevent customer attrition.
In conclusion, the research underscores the evolving landscape of consumer banking towards digital channels and the critical role of security in fostering trust and retention. Financial institutions must adapt to these changing preferences and invest in secure digital solutions to meet consumer expectations and safeguard against fraud risks.