Survey: Customers trust banks to protect sensitive info

Most customers trust banks to protect their personal and financial data, although that sense is fragile, according to a survey of customers and bank executives by IT solutions company Integris. .Released March 2, the report revealed more than half those surveyed listed security as the primary reason they chose their institution. Most reported little direct experience with breaches, with the vast majority not receiving a breach notification from their bank in the past year. Fifty-seven percent believed their bank had never been breached, while 15 percent said their bank rarely or never communicates about security updates.Forty percent listed malicious attackers stealing bank data as their biggest concern. Two-thirds of customers would consider switching banks after a serious breach, including nearly 25 percent who would be “very likely” to do so.Artificial intelligence was emerging as a key concern. Fifty-two percent of customers worried AI could mistakenly freeze their accounts or block legitimate transactions, and 40 percent said AI use could expose personal data. Nearly 25 percent said they did not understand how their bank uses AI.Community banks plan sharp increases in technology spending this year, even as many leaders say they lack a clear picture of where current IT dollars go. Forty-five percent of bank executives expected their technology budgets to rise by at least 40 percent next year, and 18 percent anticipated increases of more than 60 percent. Cybersecurity, compliance automation, AI governance and data integration ranked as top priorities.The spending push comes as more than half of banks report recent security incidents. A majority of executives said their institution experienced a significant email-based breach in the past year, and half reported a mobile-related breach.Executives also report challenges with AI oversight, with more than one-third struggling to interpret AI outputs or understand AI-driven decisions. Sixty-four percent of executives were unsure how much their bank spent on IT, citing costs spread across departments, vendors and legacy systems. Many executives reported concerns with aging core systems and complex technology stacks built over decades, which they said made modernization difficult without disrupting customer services.