For our second annual financial services report, we partnered with Insights West to survey 1,604 consumers in the United States and the United Kingdom to better understand consumer perceptions and buying decisions when selecting a financial services company. This research revealed the key online and mobile banking trends that will impact financial services going into 2020, along with important insights into building consumer trust for the long term.
Online banking widely used, consumers more aware
According to survey results, 90% of consumers ages 18-74 are conducting online banking transactions at least once a month, with younger consumers being the most engaged and comfortable to do so. Some common online banking transactions include:
- Checking online account balances
- Paying bills online
- Transferring money between online accounts
Consumers are also showing a high level of awareness of fraud and fraud prevention techniques, including:
- Identity theft
- Credit card fraud
- Multifactor authentication
- One-time passwords
- Account takeover fraud
- Card not present fraud
- Synthetic identity fraud
Consumers embrace mobile banking
Our research shows that financial services consumers are using mobile devices to access their accounts at increasing rates. Since 2014, mobile device transactions have increased by 118% – and in the last year alone, the percentage of transactions done via a mobile device shot up from 28% to 61%. Unsurprisingly, mobile app usage is becoming more popular, having grown from 15% in 2014 to 39% in 2019 (which is twice the rate of mobile web usage).
Financial fraud also goes mobile, mirroring consumer behavior
As we analyze fraud rates between 2014 and 2019, we can see that fraudsters are mimicking consumer mobile behavior and increasingly committing fraud from mobile devices. In the first half of 2019, iovation saw 50% of risky transactions originating from mobile devices, up from 41% in 2018, and 21% in 2017 – and mobile fraud controls aren’t as robust as those for personal computers.
As both consumers and fraudsters continue to increase their mobile device usage when accessing financial services accounts, consumer expectations for a secure and seamless experience will increase as well.
"Fraudsters will purchase every piece of personally identifiable information on a victim, including name, address, birth date, and social security number. It all looks perfect on paper and matches the credit bureau information exactly. Stopping fraud is why I come to work every day. The success we’ve had from using iovation is very rewarding."
Cristina Koder, Check Fraud Operations Supervisor | UMB Bank
Remain competitive by fostering consumer trust and security influence consumer buying decisions
One of the biggest takeaways from the survey is that consumer priorities have shifted, and when it comes to selecting a financial services provider, security and privacy outweigh traditional customer acquisition strategies like low service fees and excellent customer service.
- 3 out of 4 consumers reported that the most important factor when choosing a financial services account is that it keeps their information secure and private
- 2 out of 3 consumers are willing to switch to companies that have more advanced security protocols and that make security easier for them
- 2 out of 5 consumers have closed a financial services account due to security and fraud concerns
Consumers expect seamless and secure access to their online banking and financial accounts
A recent study found that 87% of consumers think brands need to put more effort into providing a seamless experience, while 90% expect consistent interactions across all channels – regardless of whether they are on mobile or web. Ultimately, consumers expect their financial services providers to optimize the in-app experience while protecting their accounts.
With mobile being the top digital channel customers use for online banking and online financial services, implementing a mobile strategy that balances security and experience can set your company apart.
“If banks aren’t delivering meaningful digital experiences, they will continue to lose consumers to neobanks and more digitally mature financial service providers. The key to building better consumer experiences is for the banks to integrate with a wide variety of FI applications and services to better satisfy the needs and goals of their customers."
Adam Miller, Director of Customer Experience Design Practice | Temenos
To learn how you can position your organization to combat online banking threats and seize mobile banking opportunities in 2020, contact us today.