How do consumers expect that their banks and credit card companies protect them? In September 2019, we tackled this question by collaborating with Insights West to survey 802 consumers from the United Kingdom and 802 consumers from the United States. The survey focused on purchasing behavior related to online usage of financial services products. More specifically, the questions focused on consumer awareness of fraud techniques, and their overall trust in financial services providers to keep their information protected and secure.
Key Takeaways From the 2019 Financial Services Fraud and Consumer Trust Report
Privacy, security and trust are critical to customer acquisition
When it comes to choosing a financial service provider, consumers say their main priority is trust that the institution will keep their assets and identities private and secure. As financial services providers continue to build out their online and mobile offerings, they’re likely to win consumer trust by prioritizing user security and communicating their commitment to combat fraud.
- When selecting a financial institution, 3 out of 4 consumers feel that keeping their personal information private and having excellent security and fraud prevention protections in place are must-have decision factors
- 7 out of 10 rate trustworthiness as a must-have decision factor
Security and trustworthiness rank higher than traditional customer acquisition strategies like promoting low service fees, excellent customer service and competitive rates.
Consumer awareness of fraud and anti-fraud techniques is high
Data breaches are prevalent and not slowing down. Because of this, the majority of consumers’ personal information is readily available on the dark web. Consumers understand the depth of their vulnerability when it comes to identity theft and other forms of fraud.
- More than 98% of consumers cite having high familiarity with credit card fraud and identity theft
- 93% of consumers are aware of account takeover
- 91% of consumers are aware of card-not-present fraud
- 90% of consumers are aware of synthetic identity fraud
If security and fraud demands are not met, consumers will look elsewhere
Knowledge is power, and consumer awareness of fraudulent activity and anti-fraud techniques empowers their decision making. If your customers don’t trust you, they will leave you – which makes fraud a problem for everyone in the company, beyond just the fraud and security teams.
- 2 out of 3 consumers are willing to switch to companies with more advanced security protocols
- 2 out of 5 consumers have closed a financial services account due to security and fraud concerns
Security and trust may be the #1 priorities, but consumers still expect a seamless experience
The majority of consumers think brands should put more effort into creating a hassle-free user experience. Financial services providers are encouraged to optimize their digital experiences if they want to retain and attract new customers.
- 50% of consumers across all age groups say they are more likely to open an online account if the forms contain pre-filled data (e.g. name, address and phone number)
- 3 out of 5 consumers say they are less likely to apply on a mobile device due to the hassle and slowness of filling in forms
Consumers want to take control of their own financial security and are searching for providers that empower them to do so
Go beyond simply protecting customer data. With consumer fraud awareness at an all time high, there is a major market opportunity for companies to offer a multi-factor experience that includes authorizations and push notifications.
- 80% of consumers say they would be interested in using an app that notifies users of unusual account activity, and seeks user approval before processing such transactions
- Only 42% of online banking consumers receive a push notification each time they make a transaction
- Only 37% receive a push notification when there’s unusual activity in their account
What should financial services companies be doing to stay relevant and profitable? Download our Financial Services Fraud and Consumer Trust Report to find out.