Consumers are increasingly concerned about online banking security, and many are willing to vote with their feet, according to a recent survey by Unisys Corp.
The survey, conducted by the Ponemon Institute in November and released by the Blue Bell, Pa., vendor last month, reported that 77% of the 1,744 respondents said they would consider switching banks over security concerns.
"That's a significant increase [from] the year prior, where the numbers hovered just around 48% to 52%," said Frank Liddy, a partner in the global financial services practice at Unisys.
Though the survey did not ask whether any people had actually followed through and switched banks solely for security reasons, Mr. Liddy said the result showed that security now occupies a much more prominent place in consumers' minds.
"Trust is becoming increasingly less associated with banks," he said.
This is supported by other findings in the survey, he said. For example, 63% of respondents said credit card fraud and identity theft are growing problems - in large part because of the abundant news reports about identity theft and data security, Mr. Liddy said.
Many people blame their financial institutions and government regulators for the problem, he said. They also feel that, since security is their banks' responsibility, banks should pay for it - 10% of survey respondents said they would be willing to pay for improved security, down from 40% a year earlier.
"There is a perception that the banking industry has not done enough," Mr. Liddy said. Very few consumers were aware that the Federal Financial Institutions Examination Council required banks to begin strengthening online security last year, he said.
Opportunities remain for banks to turn the issue to their advantage, he said. Most banks only address security after suffering a breach or a major fraud attack, he said, whereas the issue is on consumers' minds all the time.
If a bank were to be more proactive in promoting its security and the improvements it is making, it stands a better chance of retaining customers who say they would switch for better security, he said.
