Mobile banking might be on the increase, but a recent study has discovered that almost one in three consumers don’t trust banks with data.

The resounding don’t trust banks with data sentiment is revealed in a major new research report from the Direct Marketing Association.

The don’t trust banks with data findings came from the Direct Marketing Association inaugural Data Tracking Study and doesn’t make happy reading for the country’s financial institutions. Nearly 30% of the 2,027 customers questioned said that they did not believe their bank could be trusted to store the information held about them.

But the survey was not just about the attitude don’t trust banks with data, it also discovered that in the same poll, almost half said they doubted the ability of public service departments to keep their data safe and even worse, said that 75% thought that political parties were the worst at keeping personal data safe.

Talking about the don’t trust banks with data findings, the executive director of the Direct Marketing Association, opined:
“Companies need to understand under what circumstances consumers are willing to share their personal information and for what reasons. Thanks to identity theft and well-publicised instances of organisational data losses, consumers are understandably wary of handing over their personal details to companies unless they absolutely have to, such as when online shopping.

“There has to be a clear trade-off in benefits to the consumer in doing so. Companies must also respect the privilege of being handed this data, or else they face the prospect of losing customers.”

The Data Tracking Survey will take place twice a year and was established to help companies identify and cope with the problems of holding data on people.

Others involved in the compilation of the survey are Equifax and fast.MAP.

Graham Burdett, Client Service Director, Consumer Marketing Services of Equifax Ltd said when discussing don’t trust banks with data: “The timing of the DMA’s first Data Tracking study couldn’t be better. With consumers increasingly concerned about security, it is crucial for companies to give consumers choice over how their personal data is used.”

Paul Seabrook, a director of fast.MAP, said about the don’t trust banks with data findings:
“It’s no surprise that people are nervous about revealing personal details since 23 per cent have experienced a security breach in the last six months which equates to about 10 million bad experiences, a frighteningly large number. People have also made it quite clear that if they give contact details in one situation this does not entitle the brand to make further contact without specific permission – especially by phone, which three quarters specifically do not want, while half don’t even want further email contact.”

Guest Article by Neil Camp