FICO Survey: UK Consumers Will Choose Banks Based on Fraud Protection
FICO’s latest survey into fraud and identity verification shows consumers rank fraud protection as number one consideration when choosing a new financial account provider and they’re now on board with the latest identity verification methods
- 30 percent of respondents selected good fraud prevention as their number one consideration when choosing a new provider
- 25 percent said they had stopped opening a new personal account as the identity checks were too difficult or time-consuming
Greater levels of checks across the financial services sector in the past year are probably contributing to consumers seeing fraud prevention as important. Some 63 percent of respondents in the
“Historically there has been a perception that fraud teams are an overhead, a necessity to cut fraud losses,” said
Biometrics take the lead - but customers still want choice
The other issue which has seen a sea-change in consumer attitudes is the identity verification methods used by providers. A few years ago, biometrics were largely unknown by consumers. Today they’re the preferred authentication methods.
When asked about making a payment online with a debit or credit card, 48 percent of respondents selected fingerprint scans as an excellent way to secure an account. Another biometric data set – face scan – was the top choice to access an account securely for 45 percent of respondents.
The appetite for receiving one-time passcodes to verify online payments has also shifted as digital engagement through banking apps has increased. FICO’s survey in 2020 found that only 14 percent wanted to receive notification of a pass-code to their mobile banking app. That percentage has increased to 36 percent in the 2022 survey.
“It is encouraging to see consumer preferences over identity checks starting to match pace with technology,” added Cox. “It seems that as new security methods become available, people are embracing them.”
Getting the balance right
There is, however, still some negative experience of verification checks that needs to be addressed by financial account providers. Consumers aren’t tolerant if their experience is poor. One in four respondents said they had stopped opening a new personal account as the identity checks were too difficult or time-consuming. Similarly, 20 percent said they had abandoned opening a savings account as the checks were too long and difficult.
“Aiming for a completely frictionless experiences could leave a provider over-exposed, but being adaptive is critical,” concluded
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i FICO commissioned online research company, Dynata, to survey 1,000
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