One of the problems with the Internet-only startups of the late ‘90s was that they underestimated the depth of consumer distrust for new financial services companies, on- or off-line. We estimate it takes a minimum of 50 million dollar-years¹ to achieve what established financial institutions already have – credibility. The survivors, NetBank, E*TradeBank, LendingTree, and PayPal have all made that investment in various ways.

¹For example, $50 million spent with a 1-year time horizon; $5 million spent with a 10-year horizon, or anything in between

Your graphic designers and copywriters will likely have far more impact on security perceptions than your IT department. The look and feel of security is more an art than a science, but there are simple things you can do to make large strides with a small investment. For an excellent review of the attributes of a trustworthy site, read Cheskin Research’s Trust in the Wired Americas <www.cheskin.com/p/ar.asp?mlid=7&arid=40&art=0>.

Table 1

The Elements of Online Trust

Source: OBR 3/03, adapted from Cheskin Research, 7/00, www.cheskin.com

The “look & feel” of security, SFNB’s login screen
(circa 1996 to 1998).

It may seem trite, but we like vault images in secure areas. For several years, the now defunct Internet banking pioneer Security First Network Bank used the vault graphic on its login screen (see above). The word vault was even included in the login URL http://www.vault.sfnb.com .                                                 

Table 2

Enhancing Financial Institution Credibility

security content for customers and prospects

•   100% fraud reimbursement guarantee
•   Immediate reimbursement for alleged fraudulent transactions (subject to investigation)
•   Modern, high-quality graphics
•   Security metaphors such as a bank vault
•   Third-party endorsements (see Table 4)
•   Profiles of staff and management including bios, quotes, pictures, streaming audio/video, etc.
•   Physical, address, phone, fax, directions
•   Security Center link on home page
•   Security advice, contacts, and emergency procedures
•   Customer testimonials about general security and the bank’s response to problems
•   Links to third-party discussions of online security such as <www.ftc.gov/infosecurity>
•   Plain-language security measures and privacy policies with quick-read summaries backed by copious detail (for the truly paranoid to peruse at their leisure)
•   Credit card security programs such as Verified by Visa or disposable numbers
•   Human “security officers” that contact customers when suspicious activity is detected

Source: Online Banking Report, 3/03

Table 3

Third-Party Endorsements

Source: Online Banking Report, 3/03
*The popup screens shown after clicking can be forged, so it’s not a foolproof system