Survey: UK Consumers Accept More Identity Checks after Losses of £15.3m across Christmas ’21
New insight suggests consumers are getting more savvy when it comes to the checks made by lenders — but can still be frustrated by delays
Highlights
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63% reported an increase in identity checks -
72% know their banks verify identities to protect accounts -
25% have abandoned opening an account because identity checks were too difficult or time-consuming -
48% said fingerprint scans were an excellent way to verify an online payment when buying online
There was a reported
Learn more here: https://www.fico.com/es/latest-thinking/ebook/consumer-survey-2022-fraud-identity-and-digital-banking-uk
Consumers do trust their providers are confirming their identities for the right reasons. 72 percent understand it’s to protect them from fraud. And 57 percent recognize the role identity verification plays in preventing money laundering.
The other important change identified by the FICO research is consumer acceptance of biometrics for authentication. When asked about making a payment online with a debit or credit card, 48 percent 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 passcode to their mobile banking app. That has increased to 36 percent in the 2022 survey.
“As spending rises in the build-up to Christmas, it triggers a spate of scams shoppers must navigate to protect their finances,” said
“It’s also good to see that as new security methods become available, shoppers are embracing them. This is an essential part of the process. Any new anti-fraud tool will prove ineffective until consumers get on board with it.”
Getting the balance right
While the FICO survey suggests understanding of identity checks is increasing, 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.
“Having the right level of checks in place to secure accounts but also to keep the customer happy is a real balancing act,”
“Banks must understand that there is no solution that will make every single customer happy. A laborious process to one consumer might be seen as simple for another. Financial institutions need to be flexible in how they check customers’ identities. Each customer and situation is unique and catering for that requires sophisticated orchestration of how identity is checked.”
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, telecommunications, health care, retail and many other industries. Using FICO solutions, businesses in nearly 120 countries do everything from protecting 2.6 billion payment cards from fraud, to helping people get credit, to ensuring that millions of airplanes and rental cars are in the right place at the right time.
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i FICO commissioned online research company, Dynata, to survey 1,000
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FICO PR Team
ficoteam@harrisonsadler.com
0208 977 9132
Source: FICO
