Just over half of consumers trust financial providers with their data

New findings from CRIF, a provider of European consumer and business credit information, has revealed that just over half (53%) of consumers trust their bank or provider to look after their data.

Across the rest of Europe, 62% of consumers trust their financial services providers, with this number rising to nearly three quarters of Americans (72%).  Italians (74%) are the highest in Europe when it comes to trusting their banks with data security, followed by French consumers (60%).

There is also a demographic divide in the UK, with those aged over 55 (58%) having greater confidence that their bank will properly look after their data, compared with just 48% of 18–34-year-olds who have the least trust.

A key factor in these attitudes is a fear of fraud, which now makes up 40% of crime in the UK*. Nearly six in ten (57%) said they try to limit how much data they share with their bank in case it increases their fraud risk, while a similar number (55%) 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. Six in ten (64%) 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 share their financial data if it means they can access better products and services. Over half (54%) of young adults would be willing to share more data if it helped them access products at a cheaper rate, while 56% would do so in return for help with their credit score and access to better products and services.

Sara Costantini, Regional Director for the UK & 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.”