The recent global survey of more than 180 senior data privacy and security professionals – as well as 7,600 consumers – found that less than a third (29%) of these organisations offer both strong data privacy practices and a sound security strategy.
This picture has so far not unduly affected consumers’ perceptions of the industry. The survey found that 83% of consumers trust banks and insurers when it comes to data. And while one in four institutions have reported being victim of a hack, just 3% of consumers believe their own bank or insurer has ever been breached. However, with the pending GDPR regulations, this trust factor is likely to change as transparency increases.
People in for a surprise
“When GDPR is introduced and all breaches are likely to be made public soon after they occur, many people will be in for a surprise,” said Zhiwei Jiang, Global Head of Financial Services, Insights & Data at Capgemini.
“The introduction of GDPR legislation next year is a prime opportunity for business transformation for banks and insurers to become the digital fortresses consumers believe them to be.”
Consumers see their trust in banks and insurers as vital
The majority of consumers view trust in data privacy and security as an extremely significant factor when choosing their bank (65%).
While compliance will be essential and is just over a year away, among executives surveyed only a third (32%) described their organisation as having made strong progress in implementing the draft guidelines.
When trust in financial institutions fails, customers will leave
The majority of consumers view trust in data privacy and security as an extremely significant factor when choosing their bank (65%).
Though many instinctively trust their banks and insurers with their data, once this trust is broken they are likely to act.
Three quarters of consumers (74%) would switch their provider in the event of a data breach. Among those who would remain with their bank or insurer if their information were compromised, over a quarter say they would be cautious about further investments.
Full survey available here – https://www.capgemini-consulting.com/resources/data-privacy-and-cybersecurity-in-banking-and-insurance
