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Brits more likely to choose a bank based on security rather than rates

POSTED: 27th July 2017
IN: Newsroom
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New research from specialist bank, Aldermore, has revealed that British consumers view security as the most important factor when selecting a bank or savings account, with more than nine in ten respondents (92%) wanting to know that their money and personal details are safe.

Whilst 88% of those surveyed say interest rates are important when choosing a savings provider, slightly ahead of the amount of people who say good customer service is important, 86%.

When it comes to seeking higher returns in a low interest rate environment, nearly one in five (19%) 18-34 year olds would consider riskier savings and investment products which offer higher rates of returns but less protection, compared to only 5% of over-55s.

Across the UK, two thirds (66%) of respondents would not consider using a savings provider that is not covered by the Financial Services Compensation Scheme (FSCS), despite the opportunity to benefit from higher interest rates on their savings.

According to the research, the biggest concern for over a third (35%) of people  is the threat of direct theft through online hacking.

Other major concerns highlighted by respondents include:

Biggest concern regarding security when thinking about bank or savings provider

% of respondents

That hackers will steal money from my account

35%

Becoming a victim of cybercrime i.e. a data breach

17%

That my provider will go bust

17%

That I will be defrauded

15%

That my personal information will be leaked

13%

When asked what would help consumers trust their bank or savings provider more when it comes to security, nearly nine in ten (89%) say they want to see further investment in security technology and 88% want their bank or savings provider to regularly update its security procedures. In addition to this, nearly six in ten (57%) would trust their bank or savings provider more if it offered biometric authentication.

Commenting on the new research, Simon Healy, Managing Director - Savings, Aldermore says: “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.

“Many savings providers, like Aldermore, focus on providing a simple, transparent and customer-focused service to savers and our research reflects that this is important, with service being one of the top three factors people consider when selecting a provider.”

**Ends**

Note to editors:

2003 online interviews with UK adults (aged 18+) were conducted by Opinium Research from  9 to 11 May 2017

For further information about Aldermore, please review our Notes to Editors page

Follow us on Twitter: @AldermoreNews

For further information, journalists can contact:

Rachael Snelling, Aldermore
Phone:          0208 1853 102
Email:           Rachael.Snelling@aldermore.co.uk 

George Pitt, Lansons
Phone:          0207 294 3626
Email:            georgep@lansons.com

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