Financial institutions need to ensure strong solutions as consumers embrace digital-first banking
The closure of physical banks and other financial services branches in the past year has accelerated digital account opening and management.
But, while the convenience of digital services is accepted by customers, they want their financial institutions to use strong identity proofing methods to protect their financial security.
According to a study by FICO, 6% of Canadians believe their identity has been used by a fraudster to open an account and 68% acknowledge that banks' identity proofing is vital to protecting them from fraud.
With the era of birthdates, mothers’ maiden names, and first pets giving way to more intimate forms of online security, Canadians have shown a willingness to comply.
Three quarters of respondents said they are happy for their banks to use biometrics such as facial scan, fingerprint and/or voiceprint to protect them and 45% expect this information to be part of the account opening process.
What clients want from digital
Despite bank branches being more widely accessible in 2021 than last year, many customers say they are more likely to open accounts using digital options.
"Consumers' expectations have shifted, placing higher priority on having a seamless and engaging digital experience, which includes establishing account security,” said Liz Lasher, vice president, FICO. “For financial service providers, this means tomorrow's success will rely on having the right platform to deliver enhanced customer experiences, improved fraud protection and financial crime compliance."
FICO’s 2nd annual Consumer Digital Banking study highlights what clients want from the digital experience.
Canadians expect to be able to prove their identity (70%), prove where they live (60%) and set up biometric security (45%) within the digital channel they used to make the application.
One in five respondents said that they would abandon an account application altogether and switch to a competitor if they were asked to prove their identity outside of the digital channel used for account opening, such as mailing documents or visiting a branch.
"Consumers embraced the digital first economy during the past 12 months, but how, when and what digital channels they prefer still varies greatly across demographics," added Lasher. "For banks, it's critical they understand their customers and deploy solutions and policies that can operate across channels and adapt to their customers evolving preferences."
