Customers choose banks based on security over rates

Banking customers are placing a greater importance on security rather than savings rates, new research has revealed

A survey conducted by Aldermore has revealed that more than nine out of 10 consumers (92%) want to know that their money and personal details are safe, while 88% said interest rates were important when choosing a savings provider, with 86% opting for good customer service.

Simon Healy, managing director of savings at Aldermore, said: “We are starting to see a change in perception when it comes to the factors impacting the decision of choosing a bank and savings provider, it is encouraging to see that consumers value security of their savings above all else.

“It is perhaps reflective of both the rise in online banking and the recent low interest rate environment that security is now an even more important consideration for consumers than simply a leading interest rate.

“Our research also highlights the important role that the Financial Services Compensation Scheme plays in reassuring customers that their savings are protected.”

Two-thirds (66%) of banking customers would not consider using a savings provider that was not covered by the Financial Services Compensation Scheme (FSCS).

Nearly one in five 18- to 34-year-olds (19%) would consider riskier savings and investment products offering higher rates of returns, but less protection, compared with only 5% of over-55s.

Nearly nine out of 10 (89%) of those surveyed said they wanted to see further investment in security technology, with 88% wanting their savings provider to regularly update its security procedures.

Almost six out of 10 (57%) would trust their savings provider more if it offered biometric authentication.

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