Most companies agree that a bank’s reputation for protecting against IT threats is an important factor when choosing a partner.
However, a joint survey conducted by B2B International and Kaspersky Lab suggests that less than 50% of financial companies regard loss of trust and reputation as one of the most severe consequences of an IT incident.
The survey results show that many customers are unhappy with the quality of protection provided by their financial partners. Only 53% of respondents believe that their financial partners are doing their best to protect customers’ financial information. At the same time, over the past year almost 41% of financial companies and 48% of e-commerce operations lost financial information due to cybercrime.
These cases can damage the relationship between financial organisations and their major customers, many of whom see information security as a critical factor. The survey found 74% of companies agreeing that they choose a bank based on its cyber-security reputation while 82% are willing to consider leaving a bank that suffers a data leak.
In contrast, only 47% of financial companies and 40% of companies working in the e-commerce sector named the loss of reputation and trust among the three most damaging consequences of IT security incidents.
Yet the survey also shows that reliably protecting payments means financial institutions retain their loyal customers and increase their income. Fifty-three per cent of the companies surveyed said they were ready to pay more for reliable protection of their financial transactions. Notably, among small businesses that figure accounts for 43%, while 64% of big companies are prepared to pay additional costs for their financial security.
“In a highly competitive market, financial companies should value every client,” said Ross Hogan, global head of the fraud prevention division at Kaspersky Lab.
“Reports of a data leak or customers’ uncertainty about the information security of a bank can disrupt that professional relationship. We advise financial institutions to take extra care of their partners, including installing specialised security solutions on computers and mobile devices.”
Sibos 2017 Day Two highlights: Brexit and banking, and why ‘data is the new oil’ in financial services
How nation first politics can impact global financial organisations It’s clear that data and regulation are the two key topics that are ... read more
The US dollar and debt yields falling on the North Korea missile test, treasury being a top target for cyber criminals and why treasurers aren't into real-time payments all hit the latest headlines in the world of treasury this week. Don't miss our ten top news stories from around the world.
Treasurers are being expected to do more work with fewer resources than ever before, so it is little wonder that the automation of day-to-day operations was highly discussed on the second day of EuroFinance, the annual treasury event held in Barcelona this week.
Chicago based Treasury Management System (TMS) vendor GTreasury and Sydney based risk and treasury management vendor Visual Risk have joined forces in a strategic alliance to ... read more