Survey: More Than Half of UK Consumers Would Switch Banks if Theirs Was Involved in a Money Laundering Scandal
FICO survey reveals that fifty-six percent of British consumers would leave their bank in the wake of a money laundering scandal, pinpointing the importance of customer relationships
Highlights:
- More than half of Brits would switch account provider if it was involved in a money laundering scandal
- 20 percent of 25 to 34 year-olds do not believe banks are fair when customers have been tricked by fraudsters
- 15 percent of cardholders believe current measures taken by banks on credit or debit card fraud are not fair; but 32 percent don’t know if banks are fair
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15 percent of
UK consumers do not believe banks are fair when dealing with customers who have been victims of account take-over
56 percent of
“There have been several high-profile money laundering scandals in the last few years, and consumers have clearly had enough,” said
Banks Also Have Opportunity to Improve Fraud Response Efforts
FICO’s survey also showed that some work may need to be done by banks to improve how consumers perceive the support offered in fraud cases.
While over half of survey respondents think it’s fair how banks deal with customers who have been victims of fraud on their credit or debit cards, this still leaves 16 million cardholders who don’t know whether current measures are fair or believe they are unfair. This suggests there could actually be a strong marketing opportunity for those institutions that want to highlight how well they look after fraud victims.
More information:
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Digital Consumer Banking and Fraud Survey – Global Results -
Digital Consumer Banking and Fraud Survey –UK Results Ebook
Those in the Millennials generation – aged 25-34 – appear to be the least impressed with banks’ current approaches to fraud. When asked about account takeover, 19 percent thought banks were not fair. And when considering cases of customers being tricked into sending money to fraudsters, 21 percent of them thought measures were not fair.
Curiously, respondents were not as worried about being tricked into sending payments to criminals as they were about other types of fraud. Only 6 percent of all those surveyed were most worried about being scammed, despite the fact that £355.3 million was lost to these scams in the first half of 2021.
“The rise of scams during the pandemic has been truly frightening,” said Cox. “This is creating a challenge for banks, which need to walk the line between stopping scams and enabling a smooth customer experience during financial transactions.”
Cox added: “Whilst a relatively low number of customers in our survey said they thought banks’ management of fraud cases was unfair, a much higher proportion did not know if banks were fair. This may signal an opportunity for some positive marketing by those institutions that are already investing in the latest analytics to detect scams.”
FICO surveyed 1,000
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FICO
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Source: FICO