CRIF: UK consumers’ trust in banks to keep data safe dented by fraud ‘fears’

The UK lags Europe and the US when it comes to consumers trusting banks and financial providers to keep their financial data safe, with lower levels of trust in the UK “fuelled” by fraud and security “fears”, according to new research by CRIF.

The latest research by consumer and business credit information provider CRIF found that 53% of consumers in the UK trust their bank or provider to look after their data, compared to 62% of Europeans who trust their financial services providers, and rising to 72% of Americans.

In Europe, Italians (74%) demonstrated the highest levels of trust in their banks regarding data security, followed by French consumers (60%).

CRIF’s findings revealed a “demographic divide” in the UK, with those aged over 55 having greater confidence that their bank will properly look after their data, at 58%, compared with just 48% of 18 to 34-year-olds, making them the age group with the lowest trust levels.

CRIF reported that UK consumers’ attitude to data security is driven by a fear of fraud, given that 57% said they try to limit how much data they share with their bank in case it increases their fraud risk, while 55% said they would switch banks if they felt their personal data was not secure.

However, younger demographics across Europe and in the US are willing to share more of their personal information and data if it helps banks to keep them safe from fraud, with 64% of those aged 18 to 34 in these regions saying they would be open to sharing more data if it meant that they were better safeguarded against fraud.

Despite concerns about fraud, in the UK, 54% of young adults would be willing to share more data if it helped them access products at a cheaper rate, while 56% would do so in return for help with their credit score and access to better products and services.

CRIF’s Sara Costantini

Sara Costantini, regional director for the UK & Ireland at CRIF, said: “A significant proportion of UK consumers don’t fully trust their provider to look after their data responsibly, higher than other countries in Europe and the US, fuelled in part by fears around fraud and security.

“Despite this, when presented with the benefits that initiatives like Open Banking can provide, it’s clear that UK consumers, particularly younger demographics, are more open to the idea of opening up their data to their providers in order to access tailored and relevant products and services, as well as helping keep them safe from fraud.”

She added that banks and other financial providers need to better convey these benefits gained through data, as well as reassure customers they are managing their data appropriately, and “be willing to go the extra mile” to build new levels of trust.

The research, conducted among 7,000 adults in Italy, Germany, France, Austria, the US, and UK, is published in CRIF’s latest ‘Banking on Banks’ report.

Further reading: CRIF forms partnership with BMW Financial Services