According to a study, almost 42% of users globally use FinTech apps, and most of them are not confident about the protection of their data and sensitive information.
In this evolving marketing landscape, consumer data and analytics help businesses across industries drive effective marketing campaigns. With brands gearing up their digital transformation initiatives, they are investing more in the cloud – especially the FinTech organizations.
In this circumstance, how do consumers protect their sensitive data while using FinTech applications? According to a recent ESET research study, nearly 42% of global consumers use at least one free FinTech application or platform. Among them, around 50% are still unsure if the solution they use, sells or takes advantage of their data.
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The researchers have explored critical areas of data security in the consumer segment for several financial technology firms across the world. The company surveyed about 10,000 customers spanning the US, UK, Australia, Brazil, and Japan on how cyber-security works around financial technology.
Simply put, the study focuses on how the audience protects their information. The respondents were also asked about rating their tech proficiency to gain detailed insight as basic, intermediate, or advanced.
Interestingly, besides the large number of consumers who have not been acquainted with the fact if their data is being sold, hardly 31% of the respondents indicated reading the terms and conditions on an app before downloading.
Similarly, only 29% of consumers read the privacy policy thoroughly. Such findings shed light on the consumers’ actions – showing how a vast majority of users globally are taking or not taking measures to protect themselves as well as their finances – which are highly vulnerable to cyber-attacks in return.
In fact, 48% of the consumers do not use a VPN and about 42% of login to their financial apps through public Wi-Fi. Furthermore, the study highlights the fact that only 1 in 5 consumers has rated themselves as ‘advanced’ in technology proficiency. And 31% of the global respondents do not even use a password manager.
According to the statistics, only 22% of users can be classified as “FinTech adopters” – as they use four or more FinTech apps. In this matter, almost 93% do have security software installed on their devices. Simultaneously, for the “FinTech non-adopters” (users who are limited to using one to three apps), this figure goes down to 85%.
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This could point to the fact – the FinTech consumers who are more likely to utilize such applications are more conscious of taking the required cyber-security precautions. Indeed, this will support in securing their sensitive records and personal finances.
In this context, Ignacio Sbampato, Chief Business Officer at ESET, explained in the company blog post – “Protecting consumers’ sensitive and financial data has never been more important. Financial technology has a role to play on the journey to personal and societal economic recovery, and it is vital that FinTech solutions and their users are adequately protected.”
