A new study conducted by Ponemon Institute, a Privacy and information management research firm, is showing us the consumer perceptions of trustworthiness for retail banking institutes. This is the its sixth year in which the study examines how issues related to consumer privacy and data security, and the ways in which retail banking institutions address those issues, translate to consumer opinion.

    Some factors that appear to either build or erode trust, can be found in the 2007 Privacy Trust Study for Retail Banking report. These factors are important for maintaining a high quality of service in an age when consumers seem to be sensitive to privacy related issues, as well as for re-building customer trust after a negative incident.

The factors that appear to build trust in a bank's privacy commitment are the following:

-- Rigorous online identity and authentication procedures.
-- Overall service quality, especially the customer service experience.
-- Stated or implied commitment to stand behind the customer in the event of data theft.
-- Privacy and data security practice disclosures, especially when banking online. Trust seals appear to be increasingly looked upon positively.
-- Respectful advertising, promotion and customer outreach, including the opportunity to opt-o

The factors that appear to erode trust in a bank's privacy commitment are the following:

-- Poorly staffed or automated customer services.
-- Data breaches -- it appears that the notification of a data breach has the most negative impact on a bank's overall trust perception.
-- Rumors of a bank's negligence or inability to protect customer information.
-- Aggressive use and sharing of personal information, especially when the sharing involves off-shore outsourcing.
-- Irrelevant or annoying advertising -- overly aggressive promotions for credit cards, mortgages and other products caused trust perceptions to decline.


    All the top twenty banks had an increased overall privacy trust scores from 2006. The banks were affected by a significant data breach event saw a decline in their privacy trust ratings. According to the Ponemon Institute, the five most trusted banks for privacy in 2007 are:

1. U.S. Bank (Minneapolis)
2. Bank of America (Charlotte)
t3. National City (Cleveland)
t3. Wachovia (Charlotte)
4. PNC Bank (Pittsburgh)
5. Chase (New York)

    Dan Burks, chief privacy officer at U.S. Bank, stated: "Safeguarding customer information is an important priority at U.S. Bank. That is why we strive to protect information about our customers, just like we watch over their money. The 2007 Most Trusted Companies for Retail Banking Study reflects the ongoing privacy commitment made every day by all U.S. Bank employees. We are extremely pleased to receive this number-one ranking."

    In addition, Dr. Larry Ponemon, chairman and founder, said: "Considering the increased attention paid to consumer privacy and the number of breaches reported during the previous year, U.S. Bank's consecutive years at the top of this study is a significant achievement and stands as a testament to their commitment to the customer. And the fact that the overall average score among the top twenty banks increased from 2006 suggests that, industry-wide, there has been a meaningful investment made in securing consumer data and building programs designed to earn customer trust."

For more information visit http://www.ponemon.org/