New data from FICO, the global analytics software provider, reveals the levels of consumer tolerance to new account opening security checks.
With 23% of UK respondents admitting to going to a competitor if asked to visit a branch or post documents as part of the digital application process, it’s clear that financial services providers need to get the balance right on security checks and a smooth customer journey.
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According to the FICO data, if asked to visit branches or post documents, only just over half of customers (52%) will complete the process as soon as possible, while nearly one in three (31%) will give up completely or go to a competitor.
The risks of abandonment continue when customers are asked to scan documents and email them or use an identity portal. When asked to do so, 17 % have gone to a competitor, and 8 % have quit the process.
Generation Y Want to Stay Digital
Consumers between the ages of 25-34 – millennials – are the least tolerant to disruption caused by the ID checking process. 42 % would abandon the process if it required them to mail documents or visit a branch.
If required to scan and email documents or use a separate identity portal, 35 %would leave the application.
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By GlobalData“Our data shows intuitive but flexible customer journeys are required,” said Matt Cox, vice president for fraud in EMEA at FICO.
“Some people are happy to provide selfies, others want to scan documents. What individuals can do – or can be encouraged to do – is personal. This makes intuitive apps and education crucial if financial services providers are to be successful at new customer acquisition.”
The role of the various digital channels available to consumers is also important for businesses to understand.
Age seemed to play a strong factor in choice, as the older people were the more likely they were to prefer websites over apps for opening an account.
Biometric Data
Awareness of biometrics is quickly spreading and today most people are open to providing their bank with a facial scan, fingerprint, or voiceprint to secure their accounts.
A small percentage think banks should never hold biometric data and it is important for many to understand why financial organisations are doing so.
Respondents were asked to select the description that best fits their comfort with biometrics and attitudes towards banks capturing this data.
The survey found 38 %are happy for banks to do so if they explain why, 28 %are comfortable with banks saving biometrics, and 13 % said they would provide the data but were not happy about it.
Another 13 % would never provide biometrics to banks or other financial organisations and 9 % remain unsure.
While older age groups were slightly more likely to say banks should never capture biometrics to protect accounts —17 % of over 65s compared to 5 % of 18-24-year-olds — there was generally little variation across age groups in the acceptance and use of biometric security checks.
