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Security concerns affect banks’ reputation

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Data and online security practices of banks are a key concern for consumers when deciding who to entrust with their personal data and transactions.
A recent survey of over 11 000 consumers commissioned by Kaspersky Lab found that 71% of the respondents in South Africa would avoid using a provider that had recently experienced a data security incident.
Despite consumers seemingly being cautious about the safety of their information and money when making online transactions, many put the onus on the provider to step up their own defences through more robust and reliable measures. At least 72% of consumers locally admitted that they would select a financial services provider or transact with an online store solely on the basis of the additional security measures it offered, to protect their hard earned cash and confidential data.
The research also found that 74% of consumers in South Africa worry about the data security practices of companies they give their personal and financial information to – a rise of 12% on the previous year. This makes it all the more important for banks and retailers to demonstrate that they are doing all they can to allay these fears and make the safety of online transactions and data their top priority.
“With more and more consumers not only using but relying on mobile banking and online payments to interact with companies and carry out transactions, there is an expectation that providers are taking adequate measures to safeguard their customers against fraud and breaches,” says Ross Hogan, global head of fraud prevention at Kaspersky Lab. “After all, our research also found that 66% of consumers would use online payments more often if they had reliable protection for financial transactions, making it clear that providers need to do more to safeguard transactional data for the long-term profitability and reputation of their business.”
With consumer demands increasing, specialist solutions can help banks boost customer retention by safeguarding not only online and mobile transactions but the integrity of their brand.