New research indicates consumers are becoming more concerned about fraud and fraud prevention in the services they choose. A study from Verint focused on how consumers are choosing banks noted fraud and security are now among the top factors they consider.
The Verint Experience Index: Banking Report 2022 found “security of personal information” replaced “low or no fees” as the top factor consumers take into consideration when choosing a bank, and that “fraud protection” and “fraud alerts” were next, beating out even convenient locations and an easy-to-use app.
“These security concerns highlight the increased digitalization of banking, which is also supported by the drop in need for convenient branch locations,” the report’s authors wrote. “While consumers clearly embrace the convenience of apps and websites, they recognize that it puts their money and data at more risk, meaning security and fraud factors feature higher in their reasons for choosing a new financial institution.”
The survey also found that even though fraud alerts were high on consumers’ wish lists overall, it varies by age who receives them or if they even know they are available. More than one-quarter of Baby Boomers don’t know if they receive them—despite “security of my personal info” and “fraud protection” being the two most important factors for 58 – 76 year-olds when choosing a financial institution. Almost half of consumers over age 41 don’t receive fraud alerts because they don’t know they are available.