Despite the finance industry being the most proactive when it comes to protecting data, more than three-quarters of organisations within the sector have been breached in the last two years.
This is according to a recent study from professional services firm KPMG, which reveals that more than one-third of consumers have had their personal bank accounts breached. This could lead to many switching providers, as many suggest they’d move if the losses weren’t recovered quickly.
The 'Consumer Loss Barometer: Banking and Financial Services Cybersecurity' report revealed that 37 per cent of customers would switch if banks refused to recover the losses, while 30 per cent said they would jump ship if the institution did not respond in a timely manner.
Jitendra Sharma, advisory line of business leader of financial services at KPMG, said: "Financial institutions have a real opportunity to solidify trust with their customers by demonstrating that security is a strategic imperative, and that they are taking every possible precaution to protect consumers.
"Consumers have a lot of options in this environment, so companies must get it right as the battle for customers is fierce."
The 449 banking consumers surveyed indicated that there are several steps banks can take to make them sleep easier when it comes to how protected their personal information is. Almost three-quarters (74 per cent) suggested a guarantee to cover losses, while 38 per cent wanted to see more regular communication and updates from their banks.
In a separate KPMG study of 400 cybersecurity executives, it was revealed that the financial sector is the most proactive when it comes to protecting sensitive data. Two-thirds (66 per cent) indicated that their firms have invested in security in the last year, while 64 per cent said their organisations have pumped more than ten per cent of their annual budget into protection.
Furthermore, 85 per cent said they had a leader within their firms whose role is focused on information security - which is very encouraging, according to Charles Jacco, an advisory principal within financial services at KPMG.
He explained that more still needs to be done to retain and attract customers, as banks need to further demonstrate their commitment to protecting sensitive data.