Financial stability, online experience, and marketing quality are among the factors affecting consumer perceptions according to Ponemon Institute’s eighth annual report, Privacy Trust for Retail Banking.

An overall decrease in privacy-trust scores suggest that many banks still face lingering effects from the global financial crisis and current economic hardships. However, the study identified leading factors contributing to either a negative or positive privacy-trust score.

Positive factors include:

•    Financial stability

•    Respectful marketing and advertising

•    Strong online identity authorization procedures

 

 

Negative factors include:

•    Financial instability

•    Notification of a data breach

•    Annoying, irrelevant marketing and advertising

•    Difficult, poorly designed online banking processes

•    Aggressive sharing of customer’s personal data

“Retail bank brands are popular targets for cybercriminals as well as being among the most highly regulated businesses, and as such must operate within strict boundaries, balancing information security with public perception,” says Dr. Larry Ponemon, chairman and founder, Ponemon Institute. “Banks with high privacy-trust scores understand that today’s consumers are savvy to data privacy issues, and have earned customer trust by applying sound security and privacy practices to their overall business strategy, including marketing and online banking.”
 
The 2010 Privacy Trust Study for Retail Banking was derived from a final sample of 5,838 surveys returned from adult consumers residing in all geographic regions of the United States.

http://www.ponemon.org/news-2/40