UK trust in banks trails Europe and US over fraud and data security concerns

British consumers have significantly lower trust in banks to protect their financial information compared to their European and American counterparts, according to the latest research from CRIF. The study reveals that only 53% of UK consumers feel confident their data is safe with their financial service providers, far below the 62% in Europe and the 72% in the US.

Countries like Italy (74%) and France (60%) also demonstrate higher levels of trust in banking data security than the UK, further highlighting the divide. The data, part of CRIF’s Banking on Banks 2024 report, analyses consumer attitudes towards managing finances and the role of financial institutions. It sheds light on the growing scepticism among UK consumers towards data sharing, especially in the face of increasing fraud.

A key driver of distrust is the growing threat of fraud, which now accounts for 40% of crime in the UK. According to the report, 57% of Brits actively reduce the amount of data they share with their banks due to concerns that it might increase their vulnerability to fraud. In addition, over half (55%) would consider switching financial providers if they felt their data wasn’t adequately protected.

However, younger consumers in the UK are showing more flexibility. While overall trust is low, those aged 18-34 are more open to sharing personal data if they see clear benefits. Around 64% of young adults said they would provide more data if it resulted in better fraud protection, and over half (54%) would do so to access more affordable products or services.

Commenting on the findings, Sara Costantini, Regional Director for the UK & Ireland at CRIF, said: “A significant proportion of UK consumers don’t fully trust their provider to look after their data responsibly, higher than other countries in Europe and the US, fuelled in part by fears around fraud and security.

“Despite this, when presented with the benefits that initiatives like open banking can provide, it’s clear that UK consumers, particularly younger demographics, are more open to the idea of opening up their data to their providers in order to access tailored and relevant products and services, as well as helping keep them safe from fraud.”

Costantini highlighted that banks and other financial institutions need to better communicate the benefits of data sharing, including its role in protecting consumers from fraud. She stressed that building trust will require institutions to demonstrate how they responsibly manage data and provide tangible value to customers.

This is the second in a series of reports from CRIF, with earlier research exploring consumer credit and debt trends. The ongoing reports aim to provide insights into the evolving relationship between financial institutions and consumers across Europe and the US, focusing on opportunities and challenges in the sector.

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