Research from Capgemini highlights a striking dichotomy between the views of consumers and banking insiders about levels of security in financial services.
The study of 7600 consumers and over 180 senior data privacy and security professionals from banking and insurance firms from eight countries emphasises the gap between the level of trust placed in banks by the public and the reality.
While banks and insurers enjoy a significantly higher level of trust from consumers in the cybersecurity of their systems (83%) than any other sector, industry insiders expressed a contrary view. Just one in five banking executives (21%) are highly confident in their ability to detect a breach, let alone defend against it.
Mike Turner, global cybersecurity chief operating officer at Capgemini, said: “Consumers implicitly trust banks with their money and data, but this faith is rooted in a mistaken belief their provider can be 100% secure. While banks are evolving to combat the sophisticated threat cybercriminals pose, public understanding of the threats and challenges remains low.”
Upcoming EU legislation requiring companies to disclose data breaches within 72 hours are likely to upset the rose-tinted perspective of consumers about fortress banking.
This is alarming, as fully 65% of consumers view trust in data privacy and security as an extremely significant factor when choosing their bank and three quarters says they would switch their provider in the event of a data breach.
The gap in perception is amplified by the finding that only three percent of consumers believe their own bank has been breached, although one in four of the institutions surveyed admitted to having been the victim of a hack.
Zhiwei Jiang, global head of financial services, insights & data at Capgemini, notes that consumers appear to instinctively trust banks and insurers without strong reason.
“When GDPR (General Data Protection Regulation) is introduced and all breaches are likely to be made public soon after they occur, many people will be in for a surprise,” he says.