High streets banks struggle to retain consumer trust in an increasingly digital world.
Lack of Trust
More than eight in听ten听(81%) Brit蝉听肠濒补颈尘听迟谤耻蝉迟听i蝉听the deciding factor on their purchasing journey,听测别迟听more than three quarter蝉听(76%)听admit they lack trust听in their听辞苍濒颈苍e banking,听according to new research.听
More and more banks are providing services online, with听Santander recently announcing the closure of 111 physical branches听and NatWest planning an overhaul of their core retail banking business听to fight off fintech rivals through the promotion of their digital channels.
Shift to Digital
Although this shift towards online banking may appear听seamless, a听recent study from anti-money laundering specialists,听SmartSearch听found that听only a third (34%) of Brit蝉听trust听their online banking service to be completely safe,听which听nearly halves听to just 18% when it comes to banks handling large sums of money online.
Furthermore,听recent news suggests听one of the most established high street banks in the UK,听NatWest,听i蝉听facing听a high court听criminal case over money laundering, in听a听further blow to听the听high street staples as they work to听build up trust with听the听public to conduct their听business online.
The听well-known听bank听has听been cited by the Financial Conduct Authority (FCA) over deposit蝉听made over a听five-year听period between 2011-2016, totalling 拢365 million5, with allegations that NatWest鈥檚 systems and controls have failed to monitor this activity听diligently enough, which could result in an unlimited fine and even criminal convictions.
Lack of Due Diligence
This has highlighted the potential shortcomings of banks in their due diligence in听policing the movement of money and is extremely damaging听for not just NatWest鈥檚 reputation,听but the reputation of the entire banking sector when it听come蝉听to earning the trust of customers.
As a leading anti-money laundering provider听for businesses,听SmartSearch听has looked closely at the level of trust towards the banking听industry听as a whole, developing a听unique听tool听using live social media sentiment to help customers see how well trusted their bank is compared to others听on the high street.听
John Dobson, CEO at听SmartSearch,听commented on recent events:听鈥淚t is clear听there are听challenging times ahead for the banking industry. The pandemic has accelerated the听transition from using physical branches to conducting听most of听our money management online, which is a big step for a lot of people听and听can be听met with听consumer听resistance.听
鈥淎s the age of digitisation grows, it is important that we do everything we can to safeguard against cyber threats and instil听our customers with trust, but recent event蝉听involving NatWest have been damaging,听not only for the individual brand but for the sector in general.
鈥淲ork needs to be done to ensure that consumers trust their money to be managed online safely, and whilst听banks are taking steps to ensure their processes are as safe as possible, it may be some time before the nation is completely accepting of the changing landscape.鈥�
