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One third of consumers don’t trust their banks

Overall distrust was higher in countries with a lower GDP per capita, rising as high as 13 percent in Mexico.

The Bank of Canada noted that Canadian consumption growth in the first quarter was 'surprisingly strong and broad-based'
The Bank of Canada noted that Canadian consumption growth in the first quarter was 'surprisingly strong and broad-based' - Copyright AFP/File GEOFF ROBINS
The Bank of Canada noted that Canadian consumption growth in the first quarter was 'surprisingly strong and broad-based' - Copyright AFP/File GEOFF ROBINS

A new survey about the relationship between customers and the banking sector has revealed a disconnect and much of this centres on security. A survey has found that only 19 percent of consumers state they are not worried about the security of their data.

The survey comes from Utimaco, a global provider of IT security solutions. The research reports a relatively high level of trust between the general public and financial institutions in regard to data security (64 percent). This indicates that more is needed from financial institutions to better communicate this to the general public.

Overall distrust was higher in countries with a lower GDP per capita, rising as high as 13 percent in Mexico. In contrast, more economically advanced societies tend to trust financial institutions more.

The whitepaper, ‘Circles of Trust 2023: Exploring Consumer Trust in the Digital Society’, was completed by surveying thousands of respondents from the U.S., Germany, Spain, United Kingdom, Singapore and Mexico.

The focus is with establishing a baseline for how people in each area view digital security and in asking bank users whether they feel safe online, their knowledge of digital threats and the precautions they take to stay safe.

The patterns show a marked difference between responses from countries with the highest and lowest GDP per capita and those in the centre of the GDP per capita distribution. The poorest and richest countries showed the most enthusiasm about digital technology and the least concern about security.

The survey also looked at the form of payment consumers believed was the most secure. Cash remains the most trusted form of payment, with 36 percent rating it the safest, including 59 percent of Germans. This suggests that the transition to a cashless society, while making progress, remains some way off.

Cryptocurrency was rated as the least secure form of payment, with only 3 percent of consumers worldwide saying that it was secure. Crypto was also the second least-preferred form of payment to use, coming only one percentage point above cheques. The use of blockchain, which enhances the security of cryptocurrency, does not appear to have entered the public consciousness to any great degree.

The research also showed that consumers consider digital security an important factor when choosing a bank (81 percent worldwide). According to Stefan Auerbach, CEO, Utimaco, in a statement provided to Digital Journal: “With increased threats of cyberattacks and new and emerging ways of making payments, it is critical that financial institutions remain vigilant.”

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Dr. Tim Sandle is Digital Journal's Editor-at-Large for science news. Tim specializes in science, technology, environmental, business, and health journalism. He is additionally a practising microbiologist; and an author. He is also interested in history, politics and current affairs.

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