Banking and Payments Intelligence Report
July 2023
With Financial Health Strained, Banks Should Fortify Security to Help Improve Customer Relationships
As financial health remains stubbornly suppressed, banks are on the hunt for ways to improve customer relationships. According to the latest JD Power data, it appears that an increased focus on account security may be an effective way to accomplish that goal.
Overall, 35% of bank customers in the United States have experienced some type of fraudulent activity on their credit or debit cards in the past 12 months. Curiously, though, only some banks are trying to take proactive steps to mitigate those occurrences. Just one-third of customers say they can recall prompts with a security review of their account.
It’s an area of neglect that could have negative ramifications on bank customer satisfaction and loyalty. Rate-chasing has seemingly stalled out—31% have moved money from their primary bank, largely the same rate since February—and with customers stuck in a financial malaise, security could emerge as a major factor in customers’ decision to move their money. That means banks need to get serious about fraud quickly.
More of the Same
There has been no significant change in overall financial health. Nearly one-third (32%) of respondents are financially healthy, while 43% are vulnerable.