Experian Releases 2019 Global Identity and Fraud Report (Asia-Pacific Edition)
- Chinese consumers demand greater security on top of convenient digital experiences
- Security methods enabled by new technologies and advanced authentication solutions instil greater online trust
- Out of those Chinese consumers who are willing to share personal data with organisations, 76 percent perceive a benefit in doing so
Beijing, China, April 25, 2019 – As organisations and consumers are increasingly interacting over digital channels, there is a need to establish mutual trust. Experian, the world’s leading information services company, recently released its 2019 Global Identity and Fraud Report Asia-Pacific (APAC) edition. Based on insights from 6,000 consumers and over 590 businesses in APAC (China, Hong Kong, India, Indonesia, Japan, Malaysia, New Zealand, Singapore, Thailand, Vietnam and Australia), the report examines how consumer trust is built in today’s digital-obsessed environment and how are businesses measuring up. It also highlights that trusted online relationships are based on businesses providing both a secure environment and seamless consumer experiences.
Consumers have higher than ever expectations for their experiences online and demand better and more secure services. Experian’s Identity and Fraud Report provides insights into local consumers’ top concerns during their online experience that would enable Chinese businesses to better understand their customers and meet their needs.
“For the most part, businesses are doing a good job of delivering their products and services via the digital channel but now is the time to look at how businesses and consumers trust the online channels and how can they create greater value,” said Jian Huang, Managing Director of Experian Greater China. “With increasing fraud incidents, businesses have an imperative to deploy advanced technologies, to protect consumers’ information and at the same time, enhance their experiences.”
Chinese consumers demand greater security on top of convenient digital experiences
The rapid development of digital channels has changed the way consumers interact with businesses, moving from face-to-face transactions to anonymous relationships built on trust. Difficult to achieve and earned over time, trusted online relationships are based on businesses providing a secure environment and a convenient customer experience. APAC consumers are most concerned about “security” during their online experience, especially in China where 83 percent of surveyed consumers see security as the most important element of their online experience (the highest in APAC).
On the contrary, most APAC businesses tend to focus on offering a convenient experience first. 58 percent of businesses believe it’s better to err on the side of permission and, as a result, risk the cost of fraudulent transactions as part of doing business online to create a more convenient online experience. By comparison, 54 percent use consumers’ information to create a more secure transaction environment.
Compared with APAC, Chinese businesses pay more attention to the security of customers’ digital experience. Only 48 percent of surveyed Chinese businesses tend to err on the side of permission, and driven by the desire to make consumers feel more secure in the transaction, 57 percent are collecting more personal data.
The traditional notion that cyber security and convenience are two opposing forces is outdated. By increasing investment, businesses can combat fraud while providing consumers a seamless online experience. Only in this way can strong mutual trust be established between businesses and consumers. Experian’s identity and fraud business comprises of nearly 300 fraud experts globally working to protect people’s identities and fight fraud for businesses across multiple sectors, including government, healthcare, financial services, retail/e-commerce, insurance and telecommunications.
Security methods enabled by new technologies and advanced authentication solutions instil greater online trust
While consumers have continued confidence in traditional methods, consumers that have been exposed to advanced authentication methods like physical or behavioural biometrics, account information, artificial intelligence and customer identification programmes tend to have a greater confidence in these methods than consumers without prior exposure.
The top four security methods that APAC consumers encounter today are: passwords, PIN codes, physical biometrics and security questions. Three quarters of surveyed APAC consumers find high confidence in their bank’s security measures if they encounter biometrics – whether physical or behavioural – during an online banking activity.
Encountered In Past 6 Months
Data obtained from surveyed Chinese consumers on new technologies and advanced authentication solutions
Today, a higher share of businesses in China is adopting advanced authentication methods than businesses in more developed markets such as Japan and Singapore. At least one third of surveyed Chinese consumers encounter advanced authentication methods regularly, and 80 percent regard biometrics within the top ten features that increase their online banking experience.
Chinese consumers are willing to share their personal data if they perceive a benefit in doing so
Most APAC consumers are willing to share personal data, such as financial, commercial and biometric data or contact information, with organisations to gain a better future digital experience. However, most Chinese consumers are significantly more hesitant about sharing. 37 percent of Chinese consumers are not willing at all to share their data (the highest in APAC).
Out of those who are willing to share personal data with organisations, 76 percent perceive a benefit in doing so. Therefore, if there are opportunities for businesses to provide a better digital experience that is secure, consumers may be more willing to share their personal data.
Transparency is another key determinant in building mutual trust
A majority of APAC consumers are aware that businesses are collecting and using their personal information. They have greater trust in businesses that are transparent about the use of their information, with 78% of Chinese consumers agreeing to the statement. 62 percent of surveyed Chinese businesses plan to invest more in transparency-inspired initiatives such as educating consumers about the use of their information, providing the consumer with a sense of control over the use of their information and communicating service terms more concisely (higher than the APAC average of 58 percent).
Government and banks are the most trusted organisations
60 percent of surveyed APAC consumers place a high level of trust in banks and insurance companies in handling their personal data, followed by government agencies (57 percent) and payment service providers (56 percent).
However, Chinese consumers are different as they place the highest trust in government agencies at a reported 66 percent (the second highest in APAC), followed by banks and insurance companies then payment system providers. It’s worth noting that as payment system providers are becoming increasingly integrated into the world of mobile banking and electronic/mobile commerce, this is likely changing the perception of Chinese consumers.
“The fast-growing adoption of smartphones and increased internet penetration have created an ecosystem that enables consumers to embrace digital technology across multiple areas of their life. Unlocking an entirely new digital lifestyle is rewarding for both businesses and consumers, but it comes with challenges,” Huang added. “As a world-leading information services company, Experian is committed to partnering with businesses to combat fraud and automate their decisions with new data and analytical tools, thus successfully coping with the increasingly fierce market competition and the opportunity of winning customers’ trust.”
The full Global Identity and Fraud Report - Asia-Pacific edition can be downloaded here.
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