The only way for a banking institution to prosper in the current, dynamic economy is to offer world-class customer service in addition to being genuinely trustworthy. Customers today wish to know that their bank, as a financial institution, places a priority on them as a person and that the way they do business with their bank is safe and secure. If a customer does not have trust in your financial institution to protect their information and perform banking services in a safe manner, they will find another financial institution that they can trust.

As has been demonstrated recently by the investigation into the Texas Capital Bank data breach, it is critical to have a strong focus on the development and retention of customer trust through good security measures and open lines of communication. Historically, trust has always been a critical component of the banking industry, but because of the rise of digital banking, it has become an even greater influence on how banks interact with their customers.

What makes up customer trust? According to the following criteria, customers rank an organization’s trustworthiness based on its ability to provide safe and secure banking services:

•   Reputation – the ability of the bank to build a positive image both within the community it serves, as well as amongst the general public.  
•   Accountability – an organization’s ability to hold itself and/or its employees accountable for any mistakes or misconduct committed while completing financial transactions.  
•   Transparency – by providing customers with access to necessary information such as policies regarding fees, rates, and interest paid on deposited funds, banks are showing that they are willing to share all relevant information concerning their product offerings.  
•   Fairness – this refers to the organization’s willingness to treat customers fairly in all aspects of their relationship with the bank.  

The concept of trust has recently come into the spotlight as more and more people become increasingly concerned about issues such as privacy and identity theft, and as technology continues to develop at such an unprecedented speed. As these issues become more prevalent, the banking industry must continue to earn and retain customer trust. If they fail to earn or retain customer trust, it will become more difficult for banks to attract new customers and retain existing ones.

Influencing Trust:

Retention of Customer, Brand Recognition / Image, Adoption of Product, Developing Long-Term Relationships, Recommendation for Other Consumers

Customers are generally willing to do more business with an organization when they feel confident about the organization's ability to keep their private information (i.e., credit card information, identification, etc.) secure, and to manage their assets in a responsible way.

How Security Affects the Customer Experience

Traditionally, banks and financial institutions delivered customer service based on three primary criteria: 1) convenience, 2) service level and 3) accessibility; however, today security has become just as critical an element of the overall customer experience as the previous three criteria mentioned.

Modern-day consumers expect that financial services institutions will provide them with the following when using online banking: 1) safe and security online banking solutions, 2) robust authentication, 3) fraud detection tools, 4) account monitoring solutions, and 5) protection of their most sensitive information (social security number, date-of-birth, address, monthly income, etc.).

While most customers will never see many of the security systems that are maintained by the financial services institution; however, they have a significant role in forming an individual customer's perception of how trustworthy and reliable a financial services institution is.

As digital banking options are rapidly being added, so too are consumer's expectations regarding how those institutions will protect their customers' private information. Today, consumers see data security as an expected feature rather than an added benefit.

The Importance of Being Transparent

Organizations that are transparent with regard to policies, security processes and customer protections generally build a higher level of trust among their customer base than an organization that does not demonstrate transparency.

Transparency can be created in many different ways, such as:

- Clear policies related to privacy.
- Clear, easy to understand information about the security of the customer's sensitive information.
- Timely communications sent to customers when a potential issue impacts their account or private information.
- Education via resources distributed to customers on how to prevent fraud.
- Open dialogue between the institution and the customers regarding service improvements.

Customers value institutions that provide honest, proactive communication about potential issues that may impact their account or private information.

Managing Your Reputation in the Digital Age

With the speed and ease of how communication occurs today, the public's perception of an organization can change quickly. Incidents involving security, service interruptions, operational issues, etc., can be reported almost instantaneously on social media, news sites, etc.

Reputation management for financial institutions has become closely related to cybersecurity and risk management strategies. Institutions that are successful in managing their reputations in times of crisis typically maintain customer confidence through their communication, support services, and continual investments in security technologies and processes.

Marketing alone cannot create a strong reputation. Organizations create strong reputations by providing exceptional customer service through day-to-day interactions and demonstrating the following characteristics:

- Responsiveness
- Accountability.

Creating Trust Among Consumers for Future Growth

Banks are expected to continue embracing digitalization, utilizing mobile phone applications, Automated Intelligence Solutions and customized products for Their Consumers. The increasing number of tools available via Digital Technology will undoubtedly provide significant benefits; however, it will also be essential to develop and retain a positive relationship with Consumers based upon Trust.

By ensuring their process for the provision of services is open, secure and communicative with Consumers, Financial Institutions should find themselves better positioned ability to respond to changes in consumer expectations as a result of the growth of technology. With the advance of technology, Trust is one of the bank’s most valuable commodities.

Lastly, earning the trust from your customers will not be impacted via one product or service provided by the bank, but will be based upon continuing your efforts to demonstrate through your actions over a period of time that you will properly manage Consumer Information, create an environment where their customers can trust in your products and services, demonstrate your ability provide reliable service and will protect the interests of your customers. The significance of Trust has never been more important to consumers, particularly with respect to how they select, evaluate, and continue to do business with their chosen Financial Institution in today's increasingly electronically connected Financial Services Industry.