The 14th of September brings new rules for those of us who bank or shop online. Stronger regulations from the second Payment Services Directive mean that shoppers and those banking may be asked for additional layers of security when making transactions, with some experts even warning that a third of shopping transactions could fail under the rules.1
Consumer Intelligence data shows that customers are unlikely to welcome the intrusion, with most feeling that banking is secure enough already, and many already struggling to cope with layers of authentication including passwords, memorable information and security devices.
“Most customers are not aware of the new rules coming in, and our research shows that the efforts banks are making to inform them may need to be redoubled if there is not to be a shock next week, “ says Ian Hughes, CEO of Consumer Intelligence. “Banks must make this experience as simple as possible if customers are to remain satisfied through the changes.”
Customers in the Dark
Our research, conducted in early September shows that over 60 per cent of the population are not aware of the changes coming. Only 39 per cent of respondents said that they knew there was a security change, and a quarter of those who knew had found about it elsewhere, rather than received a letter from their bank.
Banks have been asking customers to update their security details in a minority of cases, with 57 per cent of people saying they had not been asked to change anything in recent weeks.
Chart 1: Changes that banks have asked their customers to make
|No security changes||57%|
|Update security details||27%|
|Download an app||13%|
|Use a new device when you log on to your account or make a payment||10%|
|Take any other extra security steps||8%|
“While some banks are being proactive, many customers have no idea that changes are ahead,” says Ian. If transactions are rejected or they can’t access their banking after the 14th it will come as a shock.”
Current security arrangements
Our survey shows that using a password is the most common way to login into online or mobile banking, although other forms of security including biometric steps such as fingerprint scanning or eye scans are becoming more common for those using their mobile phones for banking. Over a quarter are already using a security token for mobile banking, and 11 per cent for those banking online.
Chart 2: Security arrangements for both online and mobile banking - what security steps do customers have to take?
|Memorable information (such as mother’s maiden name, or name of pet)||32%|
|I don’t use mobile banking||26%|
|Use of security token or device||11%|
Online banking on a computer or similar device
|Memorable information (such as mother’s maiden name, or name of pet)||58%|
|Use of security token or device||27%|
|I don't use online banking||9%|
Most customers are happy with the current level of security their banks are offering. Nearly 70 per cent agreed with the statement ‘I feel online banking is secure’, while only a quarter agreed or strongly agreed with the statement ‘I wish my bank asked for more identification and passwords to make online banking more secure’.
A third of people agreed that they find it hard to remember the passwords and memorable information that is necessary to get into online banking.
As the chart below shows, overall satisfaction with current security measures is very high, with customers believing that online banking is more secure, on average, than making payments with a mobile phone.
Chart 3: How secure, on average, do people find the following (where five is very secure and one is not secure at all).
|Login to mobile banking||4|
|Login to online banking||4.1|
|Making payments from a mobile phone||3.8|
|Viewing a balance and transactions online||4.1|
“Customers are convinced that online banking is already secure, and many are struggling with existing needs for passwords and information,” warned Ian. “If extra security measures cause payments to be denied, or customers cannot get into their accounts, they will struggle to see the benefit. It’s vital that banks manage this change well for the sake of their relationship with their customers.”
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