by Thomas Wailgum

Online Banking Firms Can’t Bank on Trust

Jun 15, 20051 min
BPM Systems

Trust is critical to generating customer loyalty in online banking. But with every phishing attack and e-mail scam, consumer confidence crumbles, bit by bit. A recent survey by the Ponemon Institute found that consumers with a high level of trust in their primary bank are loyal: 55% of them say that they never visit another bank’s website. However, among these same consumers, 37% would take their business elsewhere if there was just one privacy breach, while another 41% would stay with their bank but cease online banking. Banks should also be careful about sending e-mails to their customers: Only 21% of respondents said that an e-mail from their bank is “always” or “most of the time” information they want to receive. That doesn’t sound too trustworthy.