Technology failures are hitting confidence in online banking with one in four customers suffering problems in the past year, according to new data from Consumer Intelligence.
The financial services market research firm found that 25% of customers say they’ve been affected by banking systems failures with the recent high-profile problems at TSB and VISA adding to the rising concern.
Worries about the security of online systems is driving customers to take action with 49% of those surveyed saying they’ve changed their behaviour. 27% of them say they now carry more cash while 82% claim to be more careful about their data.
However, 32% of bank customers admit they have never changed online passwords and another 23% say they change passwords less than once a year.
Andy Buller, key account director at Consumer Intelligence said: “Systems are feeling the strain as digital banking expands and the pressure to implement Open Banking reforms means it is likely there will be more problems.
“Banks are having to work with and update old systems and while they are investing in new technology there is often a race to be first which can mean vital testing is not carried out.
“As customers we can blame the banks for issues and data breaches but many of us leave ourselves open to issues by not changing passwords regularly and using the same password across all accounts. Once a hacker has one password they have access to all your accounts.”
Technology failures have an impact on customer attitudes to banks, the research found. 43% of customers say they would be put off applying to a bank which had suffered technical issues.