British Retail Banks Fail to Secure Consumer TrustUnisys survey reveals poor customer treatment now surpasses security as primary consumer concern, signifying changing trends and potential new “trust crisis”London, June 21, 2007 – Research by Unisys Corporation (NYSE: UIS), the worldwide technology services and solutions company, has revealed that trust in the UK retail banking industry has eroded significantly to the point where banking is now less trusted than the technology, health and even the education industries. In fact, the survey found that an overwhelming majority (71%) of UK consumers do not trust their banks.
These findings point to a significant shift in consumer sentiment and their willingness to switch banks if better service and intimacy was available. This should be considered in light of separate Unisys studies conducted in 2005 and 2006 where approximately 47% of UK consumers indicated they would switch banks for one offering better security.¹
The research results point to a lack of empathy by banks for the needs and requirements of their customers. The findings come at a difficult time for the banks, with concerns over account fees, fraud, security of information and perceived excessive profits all negatively impacting on the public’s perceptions of the retail banking industry.
“Engendering trust in any industry is a difficult – but critical – process, dependent on many factors. The Unisys research shows that the security crisis in its own right is over…It's broader in the eyes of the customer now and the trust of the customers is in jeopardy if banks don’t respond better,” commented Elton Birden vice president, UK Financial Services, Unisys. “Banks must look beyond firewalls and data breaches and understand that consumers consider everything when deciding where to place their trust. The good news is that the U.K. public is no longer apathetic about security as Unisys had found in 2005. The bad news is they’re now angry and want much more from banks to keep their trust. Financial institutions have not listened and do not seem empathetic to customer concerns.
Banks risk a mass customer exodus if they don't get the trust equation right by securing their business operations in the ways their customers want. Banks must take a hard look at changing views and address the growing negative perception of their industry, from both a trust and a security viewpoint. They need to think about the interdependent relationships that trust plays not only in physical and IT security but other areas such as customer relationship service, financial management, and community commitment as essential to building trust.”
He concluded, “These results are a wake up call for the UK retail banking industry. Recent developments around financial charges and profits, branch closures, and data breaches and other security issues have done much to erode the public’s positive perceptions of their financial institutions. The poor performance by the online banks also suggests that face-to-face contact and the ‘human touch’ count for a lot with the British public. Unisys research shows that banks can build customer trust in surprising ways perhaps not previously realized – it’s more than safeguarding branches and protecting data. Banks must have clear communication with customers and also address the emotional dimension of trust. Our research underlines the idea that everything a bank tries to do is dependent on trust – developing new products, finding new ways to market and increasing market share.
This research was conducted by The Ponemon Institute, a leading independent research organization that specializes in trust and privacy issues, on behalf of Unisys in April 2007. 679 members of the public were questioned on their attitudes to their banks by email and telephone. The research is part of a broader multi-year, global Unisys Trusted Enterprise study that examines trust, security and related issues. The initiative includes data on consumer and business sentiments to provide comprehensive tools for companies and governments to better redefine their own security and business processes for greater impact and visibility into the cause and effect relationships between business and technology goals and how they serve customers.
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About Unisys Unisys is a worldwide information technology services and solutions company. We provide consulting, systems integration, outsourcing and infrastructure services, combined with powerful enterprise server technology. We specialize in helping clients use information to create efficient, secure business operations that allow them to achieve their business goals. Our consultants and industry experts work with clients to understand their business challenges and create greater visibility into critical linkages throughout their operations. For more information, visit www.unisys.com.
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