Significant drop of 10% in consumers “extremely concerned” with security of online banking. There is evidence that online tenure mitigates security concerns. The concern will never disappear any more than worry about air crashes, but familiarity will ensure customer participation.

Consumer Internet Barometer – Economics – The Conference Board

Nearly 52 percent of online consumers are extremely concerned about security when banking online, but the level has fallen from 62 percent in 2004.At the other end of the anxiety barometer is the filing of federal taxes online. Only 43 percent of web surfers feel the same degree of apprehension about filing their federal taxes online.

But more people are getting comfortable with this process. Just two years ago, 52 percent of online consumers were extremely concerned about filing online.

Women are generally more concerned than men about security when conducting financial transactions online. But the gender gap has narrowed and both sexes are less concerned today than they were in 2004.

“It is not surprising that we still see high levels of wariness about the security of banking and filing taxes online,” says David Stark, North America Privacy Officer of TNS.

“Many Americans are alarmed by Internet scams and media reports of data security breaches. The easing up in concern levels is encouraging, however, as it suggests that consumers are not only more familiar with banking and filing taxes online, but also increasingly aware of how to protect themselves on the Web,” Stark added.

Relevance to Bankwatch:

Understanding the impact and dynamic of online tenure and working with customers as they become more comfortable by evolving at the right pace, and not falling behind customers expectations, is part of the winning strategy.