Consumers may switch banks over authentication, says survey

Entersekt has released survey data showing that 43.2% of consumers would consider switching financial institutions based on authentication methods alone. The findings come from its State of Digital Banking Security report, based on responses from more than 400 people in the United States.

The survey highlights tension between the fraud controls used by banks and credit unions and the methods consumers say they trust. It suggests authentication choices are becoming both a commercial and security issue for financial institutions.

More than 90% of respondents said fraud prevention is a leading factor when choosing a financial institution. Yet 41.1% said their bank's authentication method was to blame for their fraud experience.

The data also shows a gap between common practice and consumer perceptions of security. While 46.7% of respondents said their financial institution still uses one-time passcodes, only 18.2% said those codes were the most secure verification method.

At the same time, 60% said they trust their bank to choose the most secure identity authentication method. That suggests customers are willing to defer to institutions on security decisions, but only up to a point.

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