Technology failures changing consumer attitudes in banking, study shows

A study from data analytics firm Consumer Intelligence has highlighted the impact of technology failures in banking, with more than 40% of consumers saying that they would be put off applying to a bank that has technical issues.

The research showed that technical problems such as security issues have led to consumers being more vigilant, with more than 45% saying that they have changed their behaviour.

Careful

Among the actions that consumers have taken to tackle online security issues are carrying more money and being more careful with their data, which were cited by 27% and 82% of respondents respectively.

The recent issues at financial firms, such as VISA and TSB, have contributed to the change in consumer attitudes towards banking, with 25% saying that they have been affected by failures of banking systems.

Commenting on why technical failures can occur among banks, Consumer Intelligence’s Key Account Director Andy Buller said: “Banks are having to work with and update old systems and while they are investing in new technology there is often a race to be first which can mean vital testing is not carried out.”

Action

Despite respondents saying that they have changed their behaviour because of banking technology failures, the study showed that banking consumers still need to take more action to protect themselves, with more than 30% admitting that they have never changed their password. Of those who have changed their passwords, 23% said that they change them less than once a year.