Digital Financial Platforms: Consumer Trust, Information Security, and Regulatory Compliance (International Journal of Research Publication and Reviews)

Summary

• The number of neobank users worldwide has grown from approximately 146 million in 2021 to an estimated 350 million or more by 2026.p.1
• In 2025, financial services data breaches cost an average of 5.56 million U.S. dollars, marking the second highest average among all sectors.p.2
• The United States recorded the highest national average cost for data breaches in 2025 at 10.22 million dollars.p.2
• Implementation of the federal open-banking rule established under Section 1033 of the Dodd-Frank Act in October 2024 was paused by court order.p.3
• The Consumer Financial Protection Bureau faced reorganization and funding reductions extending through 2026 and beyond.p.3
• State-level legislative updates expanded the U.S. state privacy law landscape to 24 states by June 2026.p.4

Key insights

1. Consumer trust in digital financial technology relies more on confidence in underlying technology than on personal financial literacy.p.1
2. Data security operates as a foundational precondition for customer trust rather than an optional supplementary platform feature.p.2
3. Users tend to evaluate platform security based on visual signals and badges rather than actual technical auditability.p.2
4. The link between regulatory compliance and consumer trust is substantially weakened when regulatory regimes are fragmented or volatile.p.3
5. Platform adoption and ongoing user retention are positively driven by the combination of institution-based and technological trust.p.3