Customers of the largest US banks have higher than average levels of “digital trust” with their banks than with fintechs and other digital-only companies, according to new research.
A report from Insider Intelligence has shown that customers are more satisfied and engaged with their bank than those customers of newer organizations.
Capital One was rated number one for digital trust out of the 10 largest US retail banks surveyed. PNC and TD Bank tied for second place.
The report found that, due to perceived levels of enhanced security and privacy, customers said they would trust their primary bank or credit union over competitors like PayPal, Visa, and Amazon.
The preference for traditional institutions became more apparent during the Covid-19 pandemic when “the largest US banks have come to customers’ aid in a time of crisis, and customers have rewarded that flexibility with greater trust in their primary financial institutions”, the report said.
The survey said traditional banks boasted customers who were more likely to open their next account or product with their current bank, rather than digital banking users who have below-average trust in their tech provider.
TD Bank had the highest perceived security, which was the most important influence over customer trust, while Capital One came in second out of the 10 banks in the 2021 study.
Privacy was deemed the second-most crucial factor determining levels of trust in digital banking. PNC was placed first for privacy, while TD Bank ranked second.
Insider Intelligence said privacy would become more important in the face of tighter regulations.