Consumers are quite confident banks and insurers can keep their data safe, but these organisations aren’t that sure. A new report by Capgemini has shown that financial institutions lack a significant amount of confidence when it comes to data protection.
Just one in five (21 per cent) of financial service organisations admitted they’re ‘highly confident’ they could detect a data breach. On the other hand, 83 per cent of consumers trust banks and insurers with their data.
Looking at the UK specifically, the figures didn’t change much. More than four-fifths (82 per cent) of consumers trust financial institutions. The institutions, however, severely lack confidence. Just 19 per cent are confident they could spot a data breach.
Capgemini say the level of consumer trust may be down to organisations not reporting on incidents. Just three per cent of consumers believe their bank suffered a data breach – while in reality, 26 per cent actually had a data breach in the last year.
“We’ve seen a mixed performance from the UK, with clear progress being made in preparation for GDPR, but a clear gap in perception on the security performance of the UK financial industry. It’s not surprising the UK is doing well when it comes to GDPR though, as existing mandates such as the data protection law, while not mandatory, encourage the UK financial industry to meet these requirements already,” commented Kristofer le Sage de Fontenay, Head of UK Financial Service practice at Capgemini Consulting.
“What the UK should worry about is the gap in perception of trust in financial institutions from the public versus the reality. Currently we’re seeing consumers placing a lot of faith in the financial services industry when it comes to protecting their data. This may be due to the lack of data breaches disclosed by the industry. However, as GDPR comes into effect, expect this trust to be tested when banks and insurers are forced to reveal breaches. The industry should be making it a priority to ensure they are putting in the right threat intelligent solutions to protect their customers’ data and proactively informing them when a breach occurs. UK consumers are more likely than most to switch to a competitor should a breach occur. This means the industry needs to get its houses in order now, before it’s too late.”
Image source: Shutterstock/Ai825