In a digital-first world, identity verification
must not hinder new business
(NYSE: FICO)
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1 in 3 Thais have abandoned opening a
personal bank account due to complex identity checks. (Graphic:
FICO)
Highlights
- Ease of use is the top priority for Thais, 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 three Thais 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
Thailand have a low tolerance for inefficient digital experiences
when opening an account via mobile app or website. According to the
study, Thais selecting a new financial account prioritize ease of
use above all else.
Nearly two in three (63%) expect to answer 10 questions or less
or they will abandon a personal bank account application. Just over
one in four (26%) will drop out if asked more than five
questions.
Regardless of the number of questions asked, one in five Thais
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
“Thai consumers are embracing digital banking and are demanding
seamless account opening experiences,” said Aashish Sharma, APAC
segment leader for risk lifecycle and decision management at
FICO. “To meet these expectations, our research shows that a
critical step financial institutions need to take to retain
customers and enhance customer satisfaction is streamlining
processes.”
Friction Frustration Exceeds Fraud Worries
In the past year, more than half of Thais have noticed more
identity checks when they log in to bank accounts (60%) or make an
online purchase (63%).
This increase in identity checks by Thai banks is a direct
response to the significant issue of identity theft in the country.
One in eight consumers (12%) have confirmed that their identity has
been fraudulently used to open an account, and nearly half (49%)
suspect that it has.
Despite this, frustration with identity checks can alter
consumer behavior. The FICO survey revealed that one in three 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
Thai consumers show varying levels of patience for different
account opening processes. They are most likely to abandon personal
loan applications (39%) due to complex or time-consuming identity
checks.
Approximately one in three (35%) have abandoned credit card
applications for the same reason or have been frustrated enough to
abandon mortgage applications (30%).
Additionally, only one in ten Thai consumers (10%) feel
comfortable opening a mortgage account through digital channels,
while a significant 36% 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.
“With more customers using digital services for faster online
loan approvals, banks must tackle and reduce consumer frustration
caused by ineffective identity checks,” added Sharma. “Close
to half of Thais (44%) will not complete a digital mortgage
application or a personal loan application (48%) 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 and speed were identified as
the top advantages (74%). Similarly, Thais ranked speed (75%) as
the top advantage via the provider’s website, followed by the
ability to open an account from anywhere (72%).
In contrast, four in five Thais (80%) believe in-branch
applications offer better security, with only about one in two
(49%) counting security as a benefit of digital account
applications via the provider’s app, and two in five (42%) via the
provider’s website.
“Consumers crave a smooth onboarding experience, but security
remains paramount,” noted Sharma. “Consumers want smarter
onboarding processes and identity checks, not riskier processes.
While they appreciate appropriate security for high-value
transactions, they expect banks to streamline the process by
leveraging technologies like improved identity verification,
transaction history analysis, open banking and government
databases.”
The survey was conducted in November 2023 by an independent
research company adhering to research industry standards. 1,002
Thai adults were surveyed, along with approximately 12,000 other
consumers in Canada, U.S., Brazil, Colombia, Mexico, The
Philippines, Indonesia, Malaysia, Singapore, India, 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.
Join the conversation at https://x.com/FICO_corp &
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US and other countries.
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version on businesswire.com: https://www.businesswire.com/news/home/20240731171307/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)
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