In a digital-first world, identity verification
must not hinder new business
(NYSE: FICO)
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1 in 3 Indonesians have abandoned opening
a personal bank account due to complex identity checks. (Graphic:
FICO)
Highlights
- Ease of use is the top priority for Indonesians, followed by
good fraud protection
- Two in three consumers expect to answer 10 questions or less or
they will abandon a savings account application
- Identity checks are on the rise but one in four Indonesians
will stop or reduce the use of existing accounts if the identity
verification experience is poor
Global analytics software leader FICO today unveiled its latest
global consumer fraud research, highlighting that consumers in
Indonesia have a low tolerance for inefficient digital experiences
when opening an account via mobile app or website. According to the
study, Indonesians selecting a new financial account prioritise
ease of use above all else.
Three in five (57%) expect to answer 10 questions or less or
they will abandon a personal bank account application. Just over
one in five (22%) will drop out if asked more than five
questions.
Regardless of the number of questions asked, close to one in
three Indonesians will give up on a personal bank account
application after 10 minutes.
More information:
https://www.fico.com/en/latest-thinking/ebook/consumer-survey-2023-digital-banking-customer-preferences-and-fraud-controls
“Indonesian consumers are actively looking for digital banking
services with smooth and effortless account opening experiences,”
said Aashish Sharma, APAC segment leader for risk lifecycle and
decision management at FICO. “Our research reveals that by
simplifying these processes, financial institutions can improve
customer retention and satisfaction.”
Friction Frustration Exceeds Fraud Worries
In the past year, close to half of Indonesians have noticed more
identity checks when they log in to bank accounts (49%) or make an
online purchase (47%).
This increase in identity checks by Indonesian banks is a direct
response to the growing issue of identity theft in the country.
Only 3% of Indonesians have confirmed that their identity has been
fraudulently used to open an account, but one in four (26.5%)
suspect it.
Despite this, frustration with identity checks can alter
consumer behaviour. The FICO survey revealed that one in four bank
customers have either stopped or reduced their use of existing
personal bank accounts and credit cards, citing the cumbersome and
time-consuming nature of these identity verification processes.
Mortgages and Loans Application Process Deserve More
Scrutiny
Indonesian consumers show varying levels of patience for
different account opening processes. They are most likely to
abandon personal loan applications (38%) due to complex or
time-consuming identity checks.
Close to one in three (33%) have abandoned credit card
applications for the same reason, while over one in four (28%) have
been frustrated enough to abandon mortgage applications.
Additionally, only 7% of Indonesian consumers feel comfortable
opening a mortgage account through digital channels, while a
significant 35% prefer to apply for personal loans in person at a
branch, rather than opting for online alternatives.
While some consumers are more tolerant of detailed processes for
certain financial products that require thorough scrutiny, the
survey clearly shows that expectations for ease of use remain
high.
“Banks promoting the use of digital services for quicker online
loan approvals need to address the frustration caused by
complicated and prolonged identity checks,” added Sharma.
“Half of Indonesians (47%) will not complete a digital mortgage
application or a personal loan application (51%) if it has more
than ten questions.”
Appreciation for Digital Application Advantages
When asked about the benefits of opening an account digitally
via the provider’s app, ease of use (81%) and the ability to open
an account at any time (81%) were identified as the top advantages.
Similarly, Indonesians ranked the ability to open an account at any
time (82%) and anywhere (81%) via the provider’s website as the top
advantages.
In contrast, four in five Indonesians (81%) believe in-branch
applications offer better security, with only one in two (51%)
counting security as a benefit of digital account applications via
the provider’s app, and less than half (45%) via the provider’s
website.
“Providing convenience and ease to consumers should not
undermine security and anti-fraud measures,” noted Sharma.
"Consumers are looking for smarter, not riskier processes.
Technologies like improved identity verification, transaction
history analysis, open banking, and government databases can save
them time without compromising security. The key is finding the
right balance between security and ease of use, especially for
high-value products and interactions.”
The survey was conducted in November 2023 by an independent
research company adhering to research industry standards. 1,001
Indonesian adults were surveyed, along with approximately 12,000
other consumers in Canada, U.S., Brazil, Colombia, Mexico, The
Philippines, Singapore, Malaysia, India, Thailand, U.K. and
Spain.
About FICO
FICO (NYSE: FICO) powers decisions that help people and
businesses around the world prosper. Founded in 1956, the company
is a pioneer in the use of predictive analytics and data science to
improve operational decisions. FICO holds more than 200 US and
foreign patents on technologies that increase profitability,
customer satisfaction and growth for businesses in financial
services, insurance, telecommunications, health care, retail and
many other industries. Using FICO solutions, businesses in more
than 100 countries do everything from protecting 4 billion payment
cards from fraud, to improving financial inclusion, to increasing
supply chain resiliency. The FICO® Score, used by 90% of top US
lenders, is the standard measure of consumer credit risk in the US
and has been made available in over 40 other countries, improving
risk management, credit access and transparency. Learn more at
www.fico.com
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US and other countries.
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version on businesswire.com: https://www.businesswire.com/news/home/20240724401482/en/
Lizzy Li RICE for FICO +65 9034 7768 lizzy.li@ricecomms.com
Saxon Shirley FICO +65 9171 0965 saxonshirley@fico.com
Fair Isaac (NYSE:FICO)
過去 株価チャート
から 6 2024 まで 7 2024
Fair Isaac (NYSE:FICO)
過去 株価チャート
から 7 2023 まで 7 2024