Consumer and business credit information provider, CRIF has published new findings revealing how users feel about managing their finances, and the role of financial providers across the US and Europe. In the UK specifically, there is a serious lack of trust in banks and financial institutions according to the findings.
In its second Banking on Banks report, CRIF finds that only 53 per cent of Brits trust their bank or provider with their data. Meanwhile, the rest of Europe is considerably more trusting with 62 per cent of respondents having faith in their providers. In fact, in Italy, 74 per cent trust their banks with data security, with 60 per cent of French respondents feeling the same way.
A similar tale is found across the pond, as 72 per cent of Americans expressed trust in their banks to look after their data.
Why are Brits cautious with their banks?
Focusing on the UK, CRIF reveals there is also a demographic divide in those showing confidence in their financial services providers. Those aged over 55 expressed more confidence (58 per cent) while 18-34 year olds were the least trusting (48 per cent).
A key factor in these attitudes is a fear of fraud, which now makes up 40 per cent of crime in the UK. Nearly six in 10 (57 per cent) said they try to limit how much data they share with their bank in case it increases their fraud risk. Meanwhile, a similar number (55 per cent) said they would switch banks if they felt their personal data was not secure.
Despite this, younger demographics across Europe and the US are willing to share more of their personal information and data if it helps banks to keep them safe from fraud. Sixty-four per cent of younger adults (18-34) said that they would be open to sharing more data if it meant that they were better safeguarded against fraud.
Beyond fraud, young UK consumers are also more open to sharing their financial data if it means they can access better products and services. Over half (54 per cent) of young adults would be willing to share more data if it helped them access products at a cheaper rate, while 56 per cent would do so in return for help with their credit score and access to better products and services.
Combatting fears of fraud
Sara Costantini, regional director for the UK and Ireland at CRIF
Sara Costantini, regional director for the UK and Ireland, CRIF said: “A significant proportion of UK consumers don’t fully trust their provider to look after their data responsibly, higher than other countries in Europe and the US, fuelled in part by fears around fraud and security.
“Despite this, when presented with the benefits that initiatives like open banking can provide, it’s clear that UK consumers, particularly younger demographics, are more open to the idea of opening up their data to their providers in order to access tailored and relevant products and services, as well as helping keep them safe from fraud.
“Banks and other financial providers need to better convey these benefits gained through data, reassure customers they are managing their data appropriately, and be willing to go the extra mile to build new levels of trust.”
CRIF is releasing a series of Banking on Banks reports throughout the year. The first report explored credit and debt, examining the economic backdrop consumers face and identifying the necessary products and services.
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