banking information security - tier 3 data security ·...
TRANSCRIPT
Data Security Confidence in the Financial Sector By: Resource 1 Electronics
How Banks Gain Total Customer Trust In 2013 Ernst & Young conducted a large-‐scale international survey of banking customers. The survey spanned 43 countries and consisted of over 32,000 respondents. They gleaned some very interesting information and if you would like to review the report in its entirety, we have provided a link to it below. However for our purposes we have focused on findings relating to information security in the financial sector. Only 44% of respondents professed complete trust in their primary financial provider, and of these 51% said it was due to the security procedures of the institution. 49% said they had moderate trust in their institution, and 7% had minimal trust. This suggests that people don’t have much trust in their financial institution, but of those that do, half of the reason is because of how the institution handles data security procedures. The report also segmented banking clients into 8 categories: -‐ Upwardly mobile -‐ Elite -‐ New world adopter -‐ Balancer -‐ Safety seeker -‐ Traditionalist
-‐ Self-‐sufficient -‐ Unhappy/
Unmoving
Within these segments, customers were asked to report on their confidence in general
personal information handling as well as handling of information related specifically to finances. Of the upwardly mobile segment there was a 4% positive gap between personal and financial information handling practices. Of the elite and balancer segments there was a 2% positive gap. The new world adopters showed the largest positive gap of 7% from personal to financial information handling. The remaining segments of respondents all displayed a negative gap between personal and financial data handling excluding the self-‐sufficient segment who showed no difference. The safety seekers and
traditionalists both showed a 2% negative gap, and the unhappy/unmoving segment showed a 4% negative gap between personal and financial confidence in data handling practices. The survey also differentiated between new-‐age online banks and traditional banks. Traditional banks showed higher levels of customer confidence in data handling practices overall than did online banks. The main takeaway we found most compelling was the fact that over half of the reason banking customers have complete confidence in their institution was because of how that institution handles sensitive information. This further suggests the paramount importance of proper data handling practices in the financial sector. It is apparent from the findings reported in this study that customers are gradually losing trust in their primary financial institution for various reasons, and a major data breach would only make matters worse. Sources Ernst & Young. EY Global Consumer Banking Survey. Data by IBM. 2013. http://www.ey.com/Publication/vwLUAssets/EY_-‐_Global_Consumer_Banking_Survey_2014/$FILE/EY-‐Global-‐Consumer-‐Banking-‐Survey-‐2014.pdf Chuck McDonald is the President of Resource 1 Electronics in Chattanooga Tennessee. He has over 30 years experience working in Information Technology. Resource 1 is a secure onsite data destruction company that disposes of obsolete digital and magnetic media containing sensitive or classified information. For more information about this or any other articles, please contact Resource 1 Electronics at [email protected].
© 2015 Resource 1 Electronics. All rights reserved.