Public trust in the data security methods deployed by financial institutions is high, IT security solutions provider Utimaco said in new research. Overall, 64% of people trust their financial institution’s methods.
Circles of Trust 2023: Exploring Consumer Trust in the Digital Society surveyed thousands of respondents from the U.S., Germany, Spain, the United Kingdom, Singapore and Mexico. The goal was to establish a baseline for how people in each area view digital security, answering such questions as whether they feel safe online, their knowledge of digital threats and the precautions they take to stay safe. This year, the research considered banking and payments, the Internet of Things and smart cities.
There was a significant difference in the responses from countries with the highest and lowest GDP per capita and those in the center. Those on the ends showed the most enthusiasm about digital technology in their lives and the least concern about security, though, in the case of the United States, they also reported much higher levels of cybercrime than other countries.
The issue of trust in financial institutions is more nuanced. Globally, 64% reported trusting their main financial institutions to keep their money and data secure, while only 5% said that they do not trust them at all. Utimaco believes this is a positive result for the financial sector, reflecting years of investment in technology and a very low rate of cybercrime that directly targets banks. Yet, it shows that there is still much to do in order to show the remaining 36% that their money is safe.
The Utimaco report also explored which form of payment consumers believed was the most secure. Cash was by far the most trusted form of payment, with 36% rating it the safest, including 59% of Germans, due to a cultural preference for physical money and a low crime rate. Cryptocurrency was rated as the least secure form of payment, with only 3% of consumers worldwide saying that it was secure. Crypto was also the second least-preferred form of payment to use, coming only one percentage point above cheques.
Consumers consider digital security an important factor when choosing their financial institution. Only 4% of consumers worldwide answered that it was not important, and only 7% said it was a low priority (9% didn’t know). The remainder of the survey respondents, 81% worldwide, answered that it was a high priority, indicating that financial institutions need to communicate how they are making their customers safer.
“Banks and financial institutions have worked hard to earn a high level of trust, so much so that only around 20% of global consumers have been affected by a loss of funds from their bank account. But with increased threats of cyber attacks and new and emerging ways of making payments, it is critical that financial institutions remain vigilant,” said Utimaco CEO Stefan Auerbach. “This is where our Circles of Trust whitepaper is a vital piece of research, highlighting the need for financial institutions to have proven and reliable cybersecurity solutions in place to maintain and improve high consumer trust.”