Just over one in five banks and insurers are confident in their ability to identify data breaches, according to a new global survey from Capgemini Consulting.
Canvassing the opinions of 7,600 consumers and more than 180 senior data privacy and security professionals, the authors found that less than a third (29%) of organizations offered both strong data privacy practices and a sound security strategy.
Nevertheless, consumers still harbor a substantial level of trust within the industry when it comes to identifying data breaches, with some 83% claiming to have faith in the banking and insurance industry’s ability to protect data.
However, evidence suggests that consumers may not have a completely accurate view on how the overall industry is dealing with the issue of cybersecurity.
Capgemini claims that around one in four institutions have reported being the victim of a breach, yet only 3% of consumers believe their bank or insurer has ever been compromised.
But with the upcoming introduction of the General Data Protection Regulation (GDPR), which will require companies to report a data breach within 72 hours of its occurrence, there is expected to be an increased level of transparency on the issue, which in turn could have an effect on levels of trust from consumers.
Zhiwei Jiang, global head of financial services, insights and data at Capgemini, warns: “When GDPR is introduced and all breaches are likely to be made public soon after they occur, many people will be in for a surprise.
“The introduction of GDPR legislation next year is a prime opportunity for business transformation for banks and insurers to become the digital fortresses consumers believe them to be.”
It’s not just customers that may have to be convinced. Last year’s KPMG Banking Outlook Survey suggested that a number of key decision makers at banks were being left “in the dark” about data breaches at their organizations.
Keeping key players informed will surely be the first step to ensuring that data remains secure.
