TRUST IN UK BANKING PROVIDERS IS HIGH BUT WILL BE QUICKLY ERODED IF TECHNOLOGY FAILS

Data breaches and fraud are the top trust turn-offs for banking customers 

UK consumers give a high amount of trust to their banking provider with 85 per cent of customers saying that they trust them with their personal information and to manage their money effectively, according to a report launched today by SQS, the leading end-to-end quality specialist^[1]. But, as consumers’ expectations rise, they will be quick to turn their backs on their bank and look for another provider if something goes wrong. 62 per cent of account holders said that if their bank suffered a data breach their trust would be broken, and 55 per cent would consider becoming a victim of fraud grounds for loss of trust.

Failure of the technology to “just work” is a trust turn-off, with 37 per cent of respondents saying they would lose faith in their provider if the website or mobile app stopped working properly. However, 95 per cent of those who now bank online agree that it makes banking quicker and they value the convenience banking technology brings, but relationships are built on trust and the bond between bank and consumer is no exception.

18 – 24 year olds, are more forgiving as a generation: only 55 per cent say they would lose trust in their bank as a result of a data breach, compared to 71 per cent of 65-74 year olds. In addition, only 52 per cent of 18-24 year olds also said that an error made on their account would cause them to lose trust in their bank, suggesting this age group assumes that banks will repay any lost funds, provide a new account and in some cases, offer compensation. The onus is on banks to ensure that their technology is robust and reliable to prevent such situations from occurring.

Customers are embracing banking technology and favouring it over more traditional methods, with only two per cent of customers saying they would check their balance by telephone or consider using it to apply for a loan. But maintaining consumer trust in technology is a fundamental step for banks as they look to strengthen their services.

“With technology a key differentiator among providers, banks face a challenge to drive market share from mature technologies whilst exploring and implementing new service options effectively. As the digital banking ecosystem continues to evolve, the need for digital quality assurance becomes a top priority to keep customer trust and generate positive feeling.” Commented DikVos, CEO of SQS.

Open Banking, set to come into effect in January 2018, will open up the market and increase competition. Business agility, speed to market and customer experience is key for all banking providers. The customer is still king and gaining their trust in technology is imperative to gaining their long-term loyalty. By prioritising the quality of the customer experience through digital devices, banks have the opportunity to differentiate themselves from less agile competitors.

To read more about this study, download the retail banking report here.

[1]Research conducted by Arlington Research for SQS, August 2017 speaking to 2000 UK adults aged 18 and over who have at least one personal current account (PCA).

Data breaches and fraud are the top trust turn-offs for banking customers 

UK consumers give a high amount of trust to their banking provider with 85 per cent of customers saying that they trust them with their personal information and to manage their money effectively, according to a report launched today by SQS, the leading end-to-end quality specialist^[1]. But, as consumers’ expectations rise, they will be quick to turn their backs on their bank and look for another provider if something goes wrong. 62 per cent of account holders said that if their bank suffered a data breach their trust would be broken, and 55 per cent would consider becoming a victim of fraud grounds for loss of trust.

Failure of the technology to “just work” is a trust turn-off, with 37 per cent of respondents saying they would lose faith in their provider if the website or mobile app stopped working properly. However, 95 per cent of those who now bank online agree that it makes banking quicker and they value the convenience banking technology brings, but relationships are built on trust and the bond between bank and consumer is no exception.

18 – 24 year olds, are more forgiving as a generation: only 55 per cent say they would lose trust in their bank as a result of a data breach, compared to 71 per cent of 65-74 year olds. In addition, only 52 per cent of 18-24 year olds also said that an error made on their account would cause them to lose trust in their bank, suggesting this age group assumes that banks will repay any lost funds, provide a new account and in some cases, offer compensation. The onus is on banks to ensure that their technology is robust and reliable to prevent such situations from occurring.

Customers are embracing banking technology and favouring it over more traditional methods, with only two per cent of customers saying they would check their balance by telephone or consider using it to apply for a loan. But maintaining consumer trust in technology is a fundamental step for banks as they look to strengthen their services.

“With technology a key differentiator among providers, banks face a challenge to drive market share from mature technologies whilst exploring and implementing new service options effectively. As the digital banking ecosystem continues to evolve, the need for digital quality assurance becomes a top priority to keep customer trust and generate positive feeling.” Commented DikVos, CEO of SQS.

Open Banking, set to come into effect in January 2018, will open up the market and increase competition. Business agility, speed to market and customer experience is key for all banking providers. The customer is still king and gaining their trust in technology is imperative to gaining their long-term loyalty. By prioritising the quality of the customer experience through digital devices, banks have the opportunity to differentiate themselves from less agile competitors.

To read more about this study, download the retail banking report here.

[1]Research conducted by Arlington Research for SQS, August 2017 speaking to 2000 UK adults aged 18 and over who have at least one personal current account (PCA).