Brits prefer biometrics for banking
24 July 2017 18:15 GMT

British people look to security measures more than rates when choosing banks, and biometrics is their preferred authentication method, finds a new survey.

In the survey by specialist lender and savings bank Aldermore, 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.

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.”