NEW DATA: Why Bank Customers Prefer Convenience Over Security

Consumers prefer speed, convenience and ease of use over security — even when it comes to accessing financial services online.

As many as 71 percent of financial consumers reported being satisfied with an authentication method if it was easy to use, while 62 percent like authentication methods that are convenient. In comparison, only 45 percent said they would prefer an authentication method due to its tight data security.

At the same time, though, the risk of identity theft and fraud is at an all-time high. Just last year, the Equifax breach, Russian ransomware attacks and a series of security breaches left consumers’ financial and credit information exposed, and trust ruined.

So, how are financial institutions (FIs) to reconcile the disconnect between the demand for fast, convenient identity verification and the need for strong digital security?

Enter the PYMNTS Digital Identity Lifestyle Capsule, in collaboration with Socure, to make sense of the rapidly changing world of digital security and authentication/verification technology. Evaluating more than 150 data points collected from digital FI consumers, our research team identified the underlying consumer preferences that help explain the current state of digital security and how it will evolve going forward.

Additional findings in the report include:

  • Forty-seven percent of consumers must submit their email addresses to access existing accounts.
  • Sixty-seven percent of consumers who have used facial recognition authentication prefer it for its security.
  • Fifty-four percent of consumers aged 25 to 34 prefer fast authentication processes.

To find out more about the state of the modern digital security landscape, click here to download the report.