How AI Adoption is Challenging Security in Banking

According to a recent survey by Accenture, many banking customers remain uncertain about the safety of their personal and financial data despite major investment in cybersecurity by banks. 

The consulting firm’s ‘Guardians of Trust: Navigating Cybersecurity in Banking’ survey found that 58% of banking customers across 39 countries surveyed worry about data security and the risk of being hacked. 

This is particularly the case when offered personalised products or services by their banks. 

Accenture finds that 81% of customers rate their own bank highly for protecting their personal data, privacy and fraud protection. However, trust levels drop when considering other banks, technology providers or third-party service providers within the broader banking ecosystem. 

Exploring the findings in an Accenture blog post, Valerie Abend, Senior Managing Director, Global Financial Services Cybersecurity Lead says: “This represents an important gap in consumer trust for banks’ critical third parties and the banking ecosystem as a whole. 

“Moreover, our Guardians of Trust Survey tells us that banks need to improve their transparency about how they are securing their customer’s data, since only 28% believe their bank effectively communicates its cybersecurity practices.”

Rising investment, rising risk

Accenture says that 54% of banks surveyed experienced material impacts from a cyber incident caused by a third party in the last year. Concerns over trust are a growing challenge as investment in technology and reliance on third parties increases, particularly around adoption of AI.

According to Accenture, banks have increased their cybersecurity spending by 140% in the past two years. However, their growing reliance on external vendors and open banking models introduces risks that many customers feel remain unaddressed. 

Banks are also under pressure to innovate quickly, often prioritising speed over security when adopting new technologies.

A key challenge is the rapid adoption of AI in banking services. AI-driven automation improves efficiency and customer experience, but 83% of banks report difficulties in aligning security measures with the speed of AI adoption. 

This concern is well-founded: cyber threats are growing in scale and sophistication, with AI-powered attacks becoming a major issue.

The rise of deepfake technology illustrates this threat. Over the past year, deepfake attacks targeting bank employees and customers have surged by 243%, making them the most common cyber threat banks now face. 

According to Accenture, 85% of these attacks are attributed to cybercriminals, underscoring the increasing dangers posed by AI-driven fraud.

Compliance vs strategic security

One of the biggest barriers to better cybersecurity lies in approach. Many banking leaders see cybersecurity primarily as a compliance requirement rather than a fundamental business strategy. 

And, while banks are tightly regulated, their third-party providers often operate with far less oversight. This creates a significant security gap, as banks remain responsible for managing risks that extend beyond their direct control.

This disconnect affects customer trust, Accenture reports. Only 28% of banking customers believe their bank effectively communicates how it protects their data. 

Additionally, 74% of banking executives say they struggle to maintain digital trust as fraud risks increase, and only 40% of customers fully trust their bank to be transparent about cybersecurity measures.

Closing the trust gap

Accenture’s research shows that 62% of customers lose confidence in their bank after a data breach, and 43% disengage entirely. 

However, banks that proactively strengthen their cybersecurity see clear benefits – institutions that make security a core strategic priority experience 58% fewer data breaches and achieve 1.5 times higher customer retention rates.

Accenture identifies three key actions banks must take to strengthen cybersecurity across the sector:

Cybersecurity by design: Security must be a core feature of all banking products and services. Banks must integrate cybersecurity from the outset, ensuring better collaboration and measures such as adaptive authentication, strong cloud configurations and continuous monitoring of third parties.

Transparent communication: Banks must clearly and proactively explain how they protect customer data across their organisation and third-party partners, including providing dynamic personal cybersecurity scores and educating customers about emerging threats such as deepfakes.

Empower the ecosystem: Employees, customers and third-party providers all play a role in strengthening cybersecurity. In particular, Accenture recommends banks invest in AI-driven threat detection and comprehensive staff training to counter advanced threats. 

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