Bank security key issue for consumers - EDS

Bank security key issue for consumers - EDS

Around a third of consumers would close all accounts and move their business to another bank if their person financial information was compromised in a data security breach, according to a survey commissioned by EDS and conducted by Canadian market research firm Ipsos Reid.

The survey of just under 1500 North American consumers also found that 10% would close some of their accounts and use another bank if their personal data was breached, while 55% would discontinue banking until they felt the crisis was resolved.

Commenting on the study, Jean-Louis Bravard, EDS financial services global leader, says: "The act of protecting consumers' personal information is not only imperative to meet compliance standards but is essential in a financial institution's ability to attract and retain a solid customer base. Financial providers must rise to security challenges or they risk losing their customers."

While the vast majority of consumers - 93% - are confident in their financial institution's ability to protect their personal information, over half (59%) still want to be provided with on-going information on measures taken to increase security.

The study also shows that consumers are conscious of how their personal information is used, and over half (53%) do not agree that banks should be performing data analysis and mining their personal information to develop financial profiles. Just under half (23%) object to receiving unsolicited advice that is based on such profiles.

But the majority (93%) believe financial institutions do not have the right to share any personal information with third parties. Around 83% of consumers said banks should obtain permission prior to releasing any personal information to third-party companies, while 76% said banks should refrain from providing third party offers, products and services, and 67% want to be told what information is being shared and with whom.

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