In 2019, over 800 reported breaches impacted nearly 500 million accounts according to the Identity Theft Resource Center. In the first half of 2020 there have been 540 reported breaches impacting an estimated 160 million accounts. Consumers are distressingly familiar with data breach headlines and the potential for their personal information to be compromised, even as demand continues to grow for enhanced digital, online services. COVID-19 has only accelerated this digital adoption.
BAI’s Banking Outlook reports that 83% of financial service organizations feel an increased sense of urgency to implement digital initiatives. COVID-19 has only served to increase this pressure as digital use increased at the onset of the pandemic in March and April. However, with an increase in digital banking, there’s heightened security concerns, including fraud attempts, technology failures, and user errors. According to 2020 BAI research, 38% of consumers across all generations report that their biggest frustration with digital banking remains the fear of fraud and security concerns.
Trust is a critical component financial institutions need in order to provide a user experience that is secure, responsive, and easy to use. As more services move online, there are some practices institutions can put in place to help build consumer trust, while also putting practical, preventative protocols in place to help keep user data secure.
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