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Industry News Security essential to customer loyalty in banking 2010-03-11 Preventing fraud is a particularly important consideration for banks, which are caretakers to their customers' savings. However, poor security may be causing customer attrition. Analysis from fraud prevention firm Guardian Analytics shows that banks may not be trying hard enough to protect their small business customers. The 2010 Business Banking Trust Study draws on a survey of 500 executives and business owners from small and midsized businesses. It shows that 55 percent of businesses experienced fraud in the past year, 58 percent of which occured as a result of online banking activities. "Banks have a new troubled asset - their customers," said Terry Austin, CEO, Guardian Analytics. "The survey data proves that financial institutions are failing to protect the small and medium businesses that are at the heart of our economic recovery." Austin suggested that those banks that neglect security "will lose customers and hurt their own recovery." In fact, 40 percent of customers took their business elsewhere after a fraud incident at their bank. Though online services are popular, it seems clear that maintaining security in the digital age may be just as essential to customer loyalty in banking. A recent Computerworld article quoted a FDIC figure showing that during the last quarter of 2009, cybercriminals stole more than $150 million from small business accounts. 
Under 50 investors offer lucrative opportunity to financial services firms
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